HOUSE SUBSTITUTE FOR

HOUSE BILL NO. 197

92ND GENERAL ASSEMBLY

TERRY L. SPIELER, Secretary.

0775S.05C

To repeal sections 32.100, 32.105, 32.110, 32.115, 32.117, 32.120, 100.105, 100.710, 100.840, 100.850, 135.207, 135.208, 135.313, 135.460, 135.478, 135.481, 135.484, 135.487, 135.500, 135.503, 135.516, 135.520, 135.530, 135.545, 135.750, 163.036, 348.256, 348.261, 620.017, 620.1039, 620.1100, 620.1103, 620.1400, 620.1410, 620.1420, 620.1430, 620.1440, 620.1450, 620.1460, 620.1560, section 32.125 as enacted by house substitute for senate bill no. 374, eighty-eighth general assembly, first regular session, section 135.535 as enacted by conference committee substitute for senate substitute for senate committee substitute for house substitute for house committee substitute for house bill no. 701 of the ninetieth general assembly, first regular session, section 135.535 as enacted by conference committee substitute no. 2 for house substitute for house committee substitute for senate bill no. 20 of the ninetieth general assembly, first regular session and section 135.766 as repealed by conference committee substitute for house substitute for house committee substitute for senate committee substitute for senate bill no. 894, ninetieth general assembly, second regular session, RSMo, and to enact in lieu thereof forty-one new sections relating to economic development projects, with effective dates.

Section A.Sections 32.100, 32.105, 32.110, 32.115, 32.117, 32.120, 100.105, 100.710, 100.840, 100.850, 135.207, 135.208, 135.313, 135.460, 135.478, 135.481, 135.484, 135.487, 135.500, 135.503, 135.516, 135.520, 135.530, 135.545, 135.750, 163.036, 348.256, 348.261, 620.017, 620.1039, 620.1100, 620.1103, 620.1400, 620.1410, 620.1420, 620.1430, 620.1440, 620.1450, 620.1460, 620.1560, section 32.125 as enacted by house substitute for senate bill no. 374, eighty-eighth general assembly, first regular session, section 135.535 as enacted by conference committee substitute for senate substitute for senate committee substitute for house substitute for house committee substitute for house bill no. 701 of the ninetieth general assembly, first regular session, section 135.535 as enacted by conference committee substitute no. 2 for house substitute for house committee substitute for senate bill no. 20 of the ninetieth general assembly, first regular session and section 135.766 as repealed by conference committee substitute for house substitute for house committee substitute for senate committee substitute for senate bill no. 894, ninetieth general assembly, second regular session, RSMo, are repealed and forty-one new sections enacted in lieu thereof, to be known as sections 32.100, 32.105, 32.115, 100.105, 100.710, 100.840, 100.850, 135.155, 135.207, 135.208, 135.211, 135.212, 135.313, 135.478, 135.481, 135.484, 135.487, 135.500, 135.503, 135.516, 135.520, 135.530, 135.800, 135.805, 135.810, 135.815, 135.818, 135.820, 135.827, 135.875, 135.880, 135.885, 135.890, 135.895, 163.036, 348.254, 348.256, 348.261, 620.017, 620.606, and 620.1039, to read as follows:

32.100.Sections 32.100 to 32.125 shall be known and may be cited as the "[Neighborhood] Affordable Housing Assistance Act".

32.105.As used in sections 32.100 to 32.125, the following terms mean:

(1)"Affordable housing assistance activities", money, real or personal property, or professional services expended or devoted to the construction, or rehabilitation of affordable housing units;

(2)"Affordable housing unit", a residential unit generally occupied by persons and families with incomes at or below the levels described in this subdivision and bearing a cost to the occupant no greater than thirty percent of the maximum eligible household income for the affordable housing unit.In the case of owner-occupied units, the cost to the occupant shall be considered the amount of the gross monthly mortgage payment, including casualty insurance, mortgage insurance, and taxes.In the case of rental units, the cost to the occupant shall be considered the amount of the gross rent.The cost to the occupant shall include the cost of any utilities, other than telephone.If any utilities are paid directly by the occupant, the maximum cost that may be paid by the occupant is to be reduced by a utility allowance prescribed by the commission.Persons or families are eligible occupants of affordable housing units if the household combined, adjusted gross income as defined by the commission is equal to or less than the following percentages of the median family income for the geographic area in which the residential unit is located, or the median family income for the state of Missouri, whichever is larger; ("geographic area" means the metropolitan area or county designated as an area by the federal Department of Housing and Urban Development under Section 8 of the United States Housing Act of 1937, as amended, for purposes of determining fair market rental rates):

Percent of State or

Geographic Area Family

Size of Household Median Income

One Person 35%

Two Persons 40%

Three Persons 45%

Four Persons 50%

Five Persons 54%

Six Persons 58%

Seven Persons 62%

Eight Persons 66%

(3)"Business firm", person, firm, a partner in a firm, corporation or a shareholder in an S corporation doing business in the state of Missouri and subject to the state income tax imposed by the provisions of chapter 143, RSMo, or a corporation subject to the annual corporation franchise tax imposed by the provisions of chapter 147, RSMo, or an insurance company paying an annual tax on its gross premium receipts in this state, or other financial institution paying taxes to the state of Missouri or any political subdivision of this state pursuant to the provisions of chapter 148, RSMo, or an express company which pays an annual tax on its gross receipts in this state;

(4)"Commission", the Missouri housing development commission;

(5)"Community services", any type of counseling and advice, emergency assistance or medical care furnished to individuals or groups in the state of Missouri or transportation services at below-cost rates as provided in sections 208.250 to 208.275, RSMo;

(6)["Crime prevention", any activity which aids in the reduction of crime in the state of Missouri;

(7)"Defense industry contractor", a person, corporation or other entity which will be or has been negatively impacted as a result of its status as a prime contractor of the Department of Defense or as a second or third tier contractor.A "second tier contractor" means a person, corporation or other entity which contracts to perform manufacturing, maintenance or repair services for a prime contractor of the Department of Defense, and a "third tier contractor" means a person, corporation or other entity which contracts with a person, corporation or other entity which contracts with a prime contractor of the Department of Defense;

(8)]"Doing business", among other methods of doing business in the state of Missouri, a partner in a firm or a shareholder in an S corporation shall be deemed to be doing business in the state of Missouri if such firm or S corporation, as the case may be, is doing business in the state of Missouri;

[(9)"Economic development", the acquisition, renovation, improvement, or the furnishing or equipping of existing buildings and real estate in distressed or blighted areas of the state when such acquisition, renovation, improvement, or the furnishing or equipping of the business development projects will result in the creation or retention of jobs within the state; or, until June 30, 1996, a defense conversion pilot project located in a standard metropolitan statistical area which contains a city with a population of at least three hundred fifty thousand inhabitants, which will assist Missouri-based defense industry contractors in their conversion from predominately defense-related contracting to nondefense-oriented manufacturing.Only neighborhood organizations, as defined in subdivision (15) of this section, may apply to conduct economic development projects.Prior to the approval of an economic development project, the neighborhood organization shall enter into a contractual agreement with the department of economic development.Credits approved for economic development projects may not exceed four million dollars from within any one fiscal year's allocation.Neighborhood assistance program tax credits for economic development projects and affordable housing assistance as defined in section 32.111, may be transferred, sold or assigned by a notarized endorsement thereof naming the transferee;

(10)"Education", any type of scholastic instruction or scholarship assistance to an individual who resides in the state of Missouri that enables the individual to prepare himself or herself for better opportunities or community awareness activities rendered by a statewide organization established for the purpose of archeological education and preservation;

(11)"Eligible farmers' market", a group of farmers, each of whom farms agricultural land located within this state which he or she rents or owns, and who have formed a group for the purpose of allowing each member farmer to sell his or her products derived from his or her farming activities to the public at a common structure or building when at least fifty percent of the costs of such structure or building are paid for by such group of farmers;

(12)"Eligible new generation cooperative", as defined in section 348.340, RSMo;

(13)"Homeless assistance pilot project", the program established pursuant to section 32.117;

(14)"Job training", any type of instruction to an individual who resides in the state of Missouri that enables the individual to acquire vocational skills so that the individual can become employable or be able to seek a higher grade of employment;

(15)](7)"Neighborhood organization", any organization performing community services or economic development activities in the state of Missouri and:

(a)Holding a ruling from the Internal Revenue Service of the United States Department of the Treasury that the organization is exempt from income taxation pursuant to the provisions of the Internal Revenue Code; or

(b)Incorporated in the state of Missouri as a not-for-profit corporation pursuant to the provisions of chapter 355, RSMo; or

(c)Designated as a community development corporation by the United States government pursuant to the provisions of Title VII of the Economic Opportunity Act of 1964; or

(d)Contributing funds to help finance a building or structure or purchase equipment located within this state and used to sell agricultural food products or to add value to food products produced in this state by members of an eligible new generation cooperative; or contributing funds to help finance a building or structure or purchase equipment owned by a not-for-profit organization located within this state and used to sell agricultural food products or to add value to food products produced by family farms as defined in subdivision (4) of section 350.010, RSMo, or family farm corporations as defined in subdivision (5) of section 350.010, RSMo;

[(16)"Physical revitalization", furnishing financial assistance, labor, material, or technical advice to aid in the physical improvement or rehabilitation of any part or all of a neighborhood area;

(17)](8)"S corporation", a corporation described in Section 1361(a)(1) of the United States Internal Revenue Code and not subject to the taxes imposed by section 143.071, RSMo, by reason of section 143.471, RSMo[;

(18)"Workfare renovation project", any project initiated pursuant to sections 215.340 to 215.355, RSMo].

32.115.1.The [department of revenue] commission shall grant a tax credit, to be applied in the following order until used, against:

(1)The annual tax on gross premium receipts of insurance companies in chapter 148, RSMo;

(2)The tax on banks determined pursuant to subdivision (2) of subsection 2 of section 148.030, RSMo;

(3)The tax on banks determined in subdivision (1) of subsection 2 of section 148.030, RSMo;

(4)The tax on other financial institutions in chapter 148, RSMo;

(5)The corporation franchise tax in chapter 147, RSMo;

(6)The state income tax in chapter 143, RSMo; and

(7)The annual tax on gross receipts of express companies in chapter 153, RSMo.

2.[For proposals approved pursuant to section 32.110:

(1)The amount of the tax credit shall not exceed fifty percent of the total amount contributed during the taxable year by the business firm or, in the case of a financial institution, where applicable, during the relevant income period in programs approved pursuant to section 32.110;

(2)Except as provided in subsection 2 or 5 of this section, a tax credit of up to seventy percent may be allowed for contributions to programs where activities fall within the scope of special program priorities as defined with the approval of the governor in regulations promulgated by the director of the department of economic development;

(3)Except as provided in subsection 2 or 5 of this section, the tax credit allowed for contributions to programs located in any community shall be equal to seventy percent of the total amount contributed where such community is a city, town or village which has fifteen thousand or less inhabitants as of the last decennial census and is located in a county which is either located in:

(a)An area that is not part of a standard metropolitan statistical area;

(b)A standard metropolitan statistical area but such county has only one city, town or village which has more than fifteen thousand inhabitants; or

(c)A standard metropolitan statistical area and a substantial number of persons in such county derive their income from agriculture.

Such community may also be in an unincorporated area in such county as provided in subdivision (1), (2) or (3) of this subsection.Except in no case shall the total economic benefit of the combined federal and state tax savings to the taxpayer exceed the amount contributed by the taxpayer during the tax year;

(4)Such tax credit allocation, equal to seventy percent of the total amount contributed, shall not exceed four million dollars in fiscal year 1999 and six million dollars in fiscal year 2000 and any subsequent fiscal year.When the maximum dollar limit on the seventy percent tax credit allocation is committed, the tax credit allocation for such programs shall then be equal to fifty percent credit of the total amount contributed.Regulations establishing special program priorities are to be promulgated during the first month of each fiscal year and at such times during the year as the public interest dictates.Such credit shall not exceed two hundred and fifty thousand dollars annually except as provided in subdivision (5) of this subsection.No tax credit shall be approved for any bank, bank and trust company, insurance company, trust company, national bank, savings association, or building and loan association for activities that are a part of its normal course of business.Any tax credit not used in the period the contribution was made may be carried over the next five succeeding calendar or fiscal years until the full credit has been claimed.Except as otherwise provided for proposals approved pursuant to section 32.111, 32.112 or 32.117, in no event shall the total amount of all other tax credits allowed pursuant to sections 32.100 to 32.125 exceed thirty-two million dollars in any one fiscal year, of which six million shall be credits allowed pursuant to section 135.460, RSMo.If six million dollars in credits are not approved, then the remaining credits may be used for programs approved pursuant to sections 32.100 to 32.125;

(5)The credit may exceed two hundred fifty thousand dollars annually and shall not be limited if community services, crime prevention, education, job training, physical revitalization or economic development, as defined by section 32.105, is rendered in an area defined by federal or state law as an impoverished, economically distressed, or blighted area or as a neighborhood experiencing problems endangering its existence as a viable and stable neighborhood, or if the community services, crime prevention, education, job training, physical revitalization or economic development is limited to impoverished persons.

3.]For proposals approved pursuant to section 32.111:

(1)The amount of the tax credit shall not exceed fifty-five percent of the total amount invested in affordable housing assistance activities or market rate housing in distressed communities as defined in section 135.530, RSMo, by a business firm.Whenever such investment is made in the form of an equity investment or a loan, as opposed to a donation alone, tax credits may be claimed only where the loan or equity investment is accompanied by a donation which is eligible for federal income tax charitable deduction, and where the total value of the tax credits herein plus the value of the federal income tax charitable deduction is less than or equal to the value of the donation.Any tax credit not used in the period for which the credit was approved may be carried over the next ten succeeding calendar or fiscal years until the full credit has been allowed.If the affordable housing units or market rate housing units in distressed communities for which a tax is claimed are within a larger structure, parts of which are not the subject of a tax credit claim, then expenditures applicable to the entire structure shall be reduced on a prorated basis in proportion to the ratio of the number of square feet devoted to the affordable housing units or market rate housing units in distressed communities, for purposes of determining the amount of the tax credit.The total amount of tax credit granted for programs approved pursuant to section 32.111 [for the fiscal year beginning July 1, 1991,] shall not exceed [two million dollars, to be increased by no more than two million dollars each succeeding fiscal year, until the total tax credits that may be approved reaches] ten million dollars in any fiscal year;

(2)For any year during the compliance period indicated in the land use restriction agreement, the owner of the affordable housing rental units for which a credit is being claimed shall certify to the commission that all tenants renting claimed units are income eligible for affordable housing units and that the rentals for each claimed unit are in compliance with the provisions of sections 32.100 to 32.125.The commission is authorized, in its discretion, to audit the records and accounts of the owner to verify such certification;

(3)In the case of owner-occupied affordable housing units, the qualifying owner occupant shall, before the end of the first year in which credits are claimed, certify to the commission that the occupant is income eligible during the preceding two years, and at the time of the initial purchase contract, but not thereafter.The qualifying owner occupant shall further certify to the commission, before the end of the first year in which credits are claimed, that during the compliance period indicated in the land use restriction agreement, the cost of the affordable housing unit to the occupant for the claimed unit can reasonably be projected to be in compliance with the provisions of sections 32.100 to 32.125.Any succeeding owner occupant acquiring the affordable housing unit during the compliance period indicated in the land use restriction agreement shall make the same certification;

(4)If at any time during the compliance period the commission determines a project for which a proposal has been approved is not in compliance with the applicable provisions of sections 32.100 to 32.125 or rules promulgated therefor, the commission may within one hundred fifty days of notice to the owner either seek injunctive enforcement action against the owner, or seek legal damages against the owner representing the value of the tax credits, or foreclose on the lien in the land use restriction agreement, selling the project at a public sale, and paying to the owner the proceeds of the sale, less the costs of the sale and less the value of all tax credits allowed herein.The commission shall remit to the director of revenue the portion of the legal damages collected or the sale proceeds representing the value of the tax credits.However, except in the event of intentional fraud by the taxpayer, the proposal's certificate of eligibility for tax credits shall not be revoked.

[4.]3.For proposals approved pursuant to section 32.112, the amount of the tax credit shall not exceed fifty-five percent of the total amount contributed to a neighborhood organization by business firms.Any tax credit not used in the period for which the credit was approved may be carried over the next ten succeeding calendar or fiscal years until the full credit has been allowed.The total amount of tax credit granted for programs approved pursuant to section 32.112 shall not exceed one million dollars for each fiscal year.

[5.]4.The total amount of tax credits used for market rate housing in distressed communities pursuant to sections 32.100 to 32.125 shall not exceed thirty percent of the total amount of all tax credits authorized pursuant to sections 32.111 and 32.112.

5.Certificates of tax credit authorized by sections 32.111 and 32.112 may be transferred, sold, or assigned by filing a notarized endorsement thereof with the commission which names the transferee and the amount of tax credit transferred, as well as any other information reasonably requested by the commission.

100.105.No later than January thirty-first of each year, the municipality shall file a report with the department of economic development on the previous year's revenue bond issuances and general obligation bond issuances, which report shall contain only the following information:

(1)The name, address, spokesperson, and telephone number of the issuing entity;

(2)The name, address, age, and type of business of the beneficiary firm;

(3)The amount, term, interest rate or rates, and date of issuance of the bonds issued;

(4)The name and address of the underwriter, if any, of such bonds;

(5)The name and address of the guarantor, if any;

(6)The size, by assets and previous year's sales, and the current number of employees, of the beneficiary firm;

(7)A copy of the preliminary official statement used when offering the bonds for sale;

(8)The estimated number of new jobs to be generated by the proposed project;

(9)A list of the use of bond proceeds, including whether the purpose of the project and the funds generated by the issuance of such bonds is to open a new business, build a branch plant, expand an existing facility, or acquire an existing business;

(10)The amount of any state sales taxes that were not paid on the project due to the tax-exempt status of the purchaser or owner of goods purchased for the project that are otherwise subject to sales tax;

(11)The estimated total cost of the project.

100.710.As used in sections 100.700 to 100.850, the following terms mean:

(1)"Assessment", an amount of up to five percent of the gross wages paid in one year by an eligible industry to all eligible employees in new jobs, or up to ten percent if the economic development project is located within a distressed community as defined in section 135.530, RSMo;

(2)"Board", the Missouri development finance board as created by section 100.265;

(3)"Certificates", the revenue bonds or notes authorized to be issued by the board pursuant to section 100.840;

(4)"Credit", the amount agreed to between the board and an eligible industry, but not to exceed the assessment attributable to the eligible industry's project;

(5)"Department", the Missouri department of economic development;

(6)"Director", the director of the department of economic development;

(7)"Economic development project":

(a)The acquisition of any real property by the board, the eligible industry, or its affiliate; or

(b)The fee ownership of real property by the eligible industry or its affiliate; and

(c)For both paragraphs (a) and (b) of subdivision (7) of this section, "economic development project" shall also include the development of the real property including construction, installation, or equipping of a project, including fixtures and equipment, and facilities necessary or desirable for improvement of the real property, including surveys; site tests and inspections; subsurface site work; excavation; removal of structures, roadways, cemeteries and other surface obstructions; filling, grading and provision of drainage, storm water retention, installation of utilities such as water, sewer, sewage treatment, gas, electricity, communications and similar facilities; off-site construction of utility extensions to the boundaries of the real property; and the acquisition, installation, or equipping of facilities on the real property, for use and occupancy by the eligible industry or its affiliates;

(8)"Eligible employee", a person employed on a full-time basis in a new job at the economic development project averaging at least thirty-five hours per week who was not employed by the eligible industry or a related taxpayer in this state at any time during the twelve-month period immediately prior to being employed at the economic development project;

(9)"Eligible industry", a business located within the state of Missouri which is engaged in interstate or intrastate commerce for the purpose of manufacturing, processing or assembling products, conducting research and development, or providing services in interstate commerce, office industries, or agricultural processing, but excluding retail[, health or professional] services."Eligible industry" does not include a business which closes or substantially reduces its operation at one location in the state and relocates substantially the same operation to another location in the state.This does not prohibit a business from expanding its operations at another location in the state provided that existing operations of a similar nature located within the state are not closed or substantially reduced.This also does not prohibit a business from moving its operations from one location in the state to another location in the state for the purpose of expanding such operation provided that the board determines that such expansion cannot reasonably be accommodated within the municipality in which such business is located, or in the case of a business located in an incorporated area of the county, within the county in which such business is located, after conferring with the chief elected official of such municipality or county and taking into consideration any evidence offered by such municipality or county regarding the ability to accommodate such expansion within such municipality or county.An eligible industry must:

(a)Invest a minimum of [fifteen] seven million dollars, or ten million dollars for an office industry, in an economic development project; and

(b)Create a minimum of [one hundred] fifty new jobs for eligible employees at the economic development project or a minimum of five hundred jobs if the economic development project is an office industry or a minimum of two hundred new jobs if the economic development project is an office industry located within a distressed community as defined in section 135.530, RSMo;

(10)"New job", a job in a new or expanding eligible industry not including jobs of recalled workers, replacement jobs or jobs that formerly existed in the eligible industry in the state;

(11)"Office industry", a regional, national or international headquarters, a telecommunications operation, a computer operation, an insurance company, or a credit card billing and processing center;

(12)"Program costs", all necessary and incidental costs of providing program services including payment of the principal of premium, if any, and interest on certificates, including capitalized interest, issued to finance a project, and funding and maintenance of a debt service reserve fund to secure such certificates.Program costs shall include:

(a)Obligations incurred for labor and obligations incurred to contractors, subcontractors, builders and materialmen in connection with the acquisition, construction, installation or equipping of an economic development project;

(b)The cost of acquiring land or rights in land and any cost incidental thereto, including recording fees;

(c)The cost of contract bonds and of insurance of all kinds that may be required or necessary during the course of acquisition, construction, installation or equipping of an economic development project which is not paid by the contractor or contractors or otherwise provided for;

(d)All costs of architectural and engineering services, including test borings, surveys, estimates, plans and specifications, preliminary investigations and supervision of construction, as well as the costs for the performance of all the duties required by or consequent upon the acquisition, construction, installation or equipping of an economic development project;

(e)All costs which are required to be paid under the terms of any contract or contracts for the acquisition, construction, installation or equipping of an economic development project; and

(f)All other costs of a nature comparable to those described in this subdivision;

(13)"Program services", administrative expenses of the board, including contracted professional services, and the cost of issuance of certificates.

100.840.1.To provide funds for the present payment of the costs of economic development projects, the board may borrow money and issue and sell certificates payable from a sufficient portion of the future receipts of payments authorized by the agreement.[The total amount of outstanding certificates sold by the board shall not exceed seventy-five million dollars.] The receipts shall be pledged to the payment of principal of and interest on the certificates.Certificates may be sold at public sale or at private sale at par, premium, or discount of not less than ninety-five percent of the par value thereof, at the discretion of the board, and may bear interest at such rate or rates as the board shall determine, notwithstanding the provisions of section 108.170, RSMo, to the contrary.Certificates may be issued with respect to a single project or multiple projects and may contain terms or conditions as the board may provide by resolution authorizing the issuance of the certificates.

2.Certificates issued to refund other certificates may be sold at public sale or at private sale as provided in this section with the proceeds from the sale to be used for the payment of the certificates being refunded.The refunding certificates may be exchanged in payment and discharge of the certificates being refunded, in installments at different times or an entire issue or series at one time.Refunding certificates may be sold or exchanged at any time on, before, or after the maturity of the outstanding certificates to be refunded. Certificates may be issued for the purpose of refunding a like, greater or lesser principal amount of certificates and may bear a higher, lower or equivalent rate of interest than the certificates being renewed or refunded.

3.The board shall determine if revenues provided in the agreement are sufficient to secure the faithful performance of obligations in the agreement.

4.Certificates issued pursuant to this section shall not be deemed to be an indebtedness of the state or the board or of any political subdivision of the state.

100.850.1.The approved company shall remit to the board a job development assessment fee, not to exceed five percent of the gross wages of each eligible employee whose job was created as a result of the economic development project, or not to exceed ten percent if the economic development project is located within a distressed community as defined in section 135.530, RSMo, for the purpose of retiring bonds which fund the economic development project.

2.Any approved company remitting an assessment as provided in subsection 1 of this section shall make its payroll books and records available to the board at such reasonable times as the board shall request and shall file with the board documentation respecting the assessment as the board may require.

3.Any assessment remitted pursuant to subsection 1 of this section shall cease on the date the bonds are retired.

4.Any approved company which has paid an assessment for debt reduction shall be allowed a tax credit equal to the amount of the assessment.The tax credit may be claimed against taxes otherwise imposed by chapters 143 and 148, RSMo, except withholding taxes imposed under the provisions of sections 143.191 to 143.265, RSMo, which were incurred during the tax period in which the assessment was made.

5.In no event shall the aggregate amount of tax credits authorized by subsection 4 of this section exceed eleven million dollars annually.

6.The director of revenue shall issue a refund to the approved company to the extent that the amount of credits allowed in subsection 4 of this section exceed the amount of the approved company's income tax.

135.155.Notwithstanding any provision of the law to the contrary, no revenue-producing enterprise shall receive the incentives set forth in sections 135.100 to 135.150 for facilities commencing operations on or after August 28, 2003.

135.207.1.(1) Any city with a population of at least three hundred fifty thousand inhabitants which is located in more than one county and any city not within a county, which includes an existing state designated enterprise zone within the corporate limits of the city may each, upon approval of the local governing authority of the city and the director of the department of economic development, designate up to three satellite zones within its corporate limits.A prerequisite for the designation of a satellite zone shall be the approval by the director of a plan submitted by the local governing authority of the city describing how the satellite zone corresponds to the city's overall enterprise zone strategy.

(2)Any Missouri community classified as a village whose borders lie adjacent to a city with a population in excess of three hundred fifty thousand inhabitants as described in subdivision (1) of this subsection, and which has within the corporate limits of the village a factory, mining operation, office, mill, plant or warehouse which has at least three thousand employees and has an investment in plant, machinery and equipment of at least two hundred million dollars may, upon securing approval of the director and the local governing authorities of the village and the adjacent city which contains an existing state designated enterprise zone, designate one satellite zone to be located within the corporate limits of the village, such zone to be in addition to the six authorized in subdivision (1) of this subsection.

(3)Any geographical area partially contained within any city not within a county and partially contained within any county of the first classification with a charter form of government with a population of nine hundred thousand or more inhabitants, which area is comprised of a total population of at least four thousand inhabitants but not more than seventy- two thousand inhabitants, and which area consists of at least one fourth class city, and has within its boundaries a military reserve facility and a utility pumping station having a capacity of ten million cubic feet, may, upon securing approval of the director and the appropriate local governing authorities as provided for in section 135.210, be designated as a satellite zone, such zone to be in addition to the six authorized in subdivision (1) of this subsection.

(4)In addition to all other satellite zones authorized in this section, any home rule city with more than one hundred fifty-one thousand five hundred but less than one hundred fifty-one thousand six hundred inhabitants which includes an existing state designated enterprise zone within the corporate limits of the city may, upon approval of the governing authority of the city and the director of the department of economic development, designate one satellite zone within its corporate limits.The zone shall be on land owned by the city which contains a wastewater treatment plant with a treatment capacity of five million six hundred thousand cubic feet per day and an electric power plant having a capacity of at least two hundred seventy-five megawatts.No satellite zone shall be designated pursuant to this subsection until the governing authority of the city submits a plan describing how the satellite zone corresponds to the city's overall enterprise zone strategy and the director approves the plan.

(5)In addition to all other satellite zones authorized in this section, any city of the fourth classification with more than three thousand eight hundred but less than four thousand inhabitants and located in more than one county and which city lies adjacent to any home rule city with more than one hundred thirteen thousand two hundred but less than one hundred thirteen thousand three hundred inhabitants and which contains an enterprise zone may, upon approval of the director and the governing authorities of the city of the fourth classification and the home rule city, designate one satellite zone within its corporate limits.The satellite enterprise zone authorized by this subsection shall be designated only if it meets the criteria established by subdivisions (1) to (4) of subsection 2 of this section.Retail businesses, as identified by the 1997 North American Industry Classification System (NAICS) sector number 44-45, located within the satellite enterprise zone shall be eligible for all benefits provided pursuant to the provisions of sections 135.200 to 135.258.

(6)In addition to all other satellite zones authorized in this section, any home rule city with more than seventy-three thousand but less than seventy-five thousand inhabitants which includes an existing state designated enterprise zone within the corporate limits of the city may, upon approval of the governing authority of the city and the director of the department of economic development, designate one satellite zone within its corporate limits.No satellite zone shall be designated pursuant to this subsection until the governing authority of the city submits a plan describing how the satellite zone corresponds to the city's overall enterprise zone strategy and the director approves the plan.

2.For satellite zones designated pursuant to the provisions of subdivisions (1) and (3) of subsection 1 of this section, the satellite zones, in conjunction with the existing state-designated enterprise zone shall meet the following criteria:

(1)The area is one of pervasive poverty, unemployment, and general distress, or one in which a large number of jobs have been lost, a large number of employers have closed, or in which a large percentage of available production capacity is idle.For the purpose of this subdivision, "large number of jobs" means one percent or more of the area's population according to the most recent decennial census, and "large number of employers" means over five;

(2)At least fifty percent of the residents living in the area have incomes below eighty percent of the median income of all residents within the state of Missouri according to the last decennial census or other appropriate source as approved by the director;

(3)The resident population of the existing state designated enterprise zone and its satellite zones must be at least four thousand but not more than seventy-two thousand at the time of designation;

(4)The level of unemployment of persons, according to the most recent data available from the division of employment security or from the United States Bureau of Census and approved by the director, within the area exceeds one and one-half times the average rate of unemployment for the state of Missouri over the previous twelve months, or the percentage of area residents employed on a full-time basis is less than sixty percent of the statewide percentage of residents employed on a full-time basis.

3.A qualified business located within a satellite zone shall be subject to the same eligibility criteria and can be eligible to receive the same benefits as a qualified facility in sections 135.200 to 135.255.

135.208.1.In addition to the number of enterprise zones authorized under the provisions of sections 135.206 and 135.210, the department of economic development shall designate one such zone in any county of the third class which is south of the Missouri River and which adjoins one county of the second class and also the state of Oklahoma.Such designation shall only be made if the area of the county which is to be included in the enterprise zone meets all the requirements of section 135.205.

2.In addition to the number of enterprise zones authorized under the provisions of sections 135.206 and 135.210, the department of economic development shall designate one such zone in any county of the third class which borders the Missouri River and which adjoins a county of the second class with a population of at least one hundred thousand inhabitants and which contains a branch of the state university.Such designation shall only be made if the area of the county which is to be included in the enterprise zone meets all the requirements of section 135.205.

3.In addition to the number of enterprise zones authorized under the provisions of sections 135.206, 135.210 and 135.256, the department of economic development shall designate one such zone in every county of the third class without a township form of government with a population of more than seven thousand eight hundred but less than ten thousand inhabitants located south of the Missouri River, which adjoins one third class county with a township form of government, and which adjoins no first or second class county.Such enterprise zone designation shall only be made if the area in the county which is to be included in the enterprise zone meets all the requirements of section 135.205.

4.In addition to the number of enterprise zones authorized pursuant to the provisions of sections 135.206, 135.210 and 135.256, the department of economic development shall designate one such zone in a city of the third class with a population of more than eight thousand but less than ten thousand located in a county of the third classification with a township form of government with a population of more than twenty thousand but less than twenty-two thousand.Such enterprise zone designation shall only be made if the area in the city which is to be included in the enterprise zone meets all the requirements of section 135.205.

5.In addition to the number of enterprise zones authorized pursuant to the provisions of sections 135.206, 135.210 and 135.256, the department of economic development shall designate one such zone for any city with a home rule form of government and a population of at least one hundred ten thousand inhabitants but not more than one hundred thirty thousand inhabitants.Such enterprise zone designation shall only be made if the area in the city which is to be included in the enterprise zone meets all the requirements of section 135.205.

6.In addition to the number of enterprise zones authorized pursuant to the provisions of sections 135.206, 135.210 and 135.256, the department of economic development shall designate one such zone for any county of the first classification without a charter form of government with a population of less than thirty thousand inhabitants.Such enterprise zone designation shall only be made if the area in the city which is to be included in the enterprise zone meets all the requirements of section 135.205.

7.In addition to the number of enterprise zones authorized pursuant to the provisions of sections 135.206, 135.210, 135.256 and 135.257, the department of economic development shall designate one such zone in a city of the fourth classification with a population of at least three thousand but less than four thousand inhabitants located in a county of the second classification with a population of at least twenty thousand but not more than twenty-five thousand inhabitants.Such enterprise zone designation shall only be made if such area which is to be included in the enterprise zone meets all the requirements of section 135.205.

8.In addition to the number of enterprise zones authorized pursuant to the provisions of sections 135.206, 135.210, 135.256 and 135.257, the department of economic development shall designate one such zone for any area that includes property in two adjoining counties where one county is a county of the third classification without a township form of government with a population of less than sixteen thousand three hundred and more than sixteen thousand inhabitants and the other county is a county of the first classification having a population of at least one hundred seventy-one thousand but less than one hundred seventy-two thousand inhabitants.Such enterprise zone designation shall only be made if such area which is to be included in the enterprise zone meets all the requirements of section 135.205.

9.In addition to the number of enterprise zones authorized pursuant to the provisions of sections 135.206, 135.210 and 135.256, the department of economic development shall designate one such zone in a city of the fourth class with a population of more than four thousand located in a county of the third classification with a township form of government and with a population of less than thirteen thousand.Such enterprise zone designation shall only be made if the area in the city which is to be included in the enterprise zone meets all the requirements of section 135.205.

10.In addition to the number of enterprise zones authorized pursuant to the provisions of sections 135.206, 135.210 and 135.256, the department of economic development shall designate one such zone in a city of the fourth class with a population of more than two thousand nine hundred located in a county of the third classification without a township form of government with a population of less than twelve thousand and more than eleven thousand seven hundred inhabitants.Such enterprise zone designation shall only be made if the area in the city which is to be included in the enterprise zone meets all the requirements of section 135.205.

11.In addition to the number of enterprise zones authorized pursuant to the provisions of sections 135.206, 135.210 and 135.256, the department of economic development shall designate one such zone in a county of the third classification without a township form of government with a population of less than twenty-four thousand five hundred and more than twenty-four thousand inhabitants.Such enterprise zone designation shall only be made if the area in the county which is to be included in the enterprise zone meets all the requirements of section 135.205.

12.In addition to the number of enterprise zones authorized in this chapter, the department of economic development shall designate one such zone for any city of the fourth classification with more than one thousand three hundred but less than one thousand four hundred inhabitants and located in any county of the third classification without a township form of government and with more than twenty-two thousand eight hundred but less than twenty-two thousand nine hundred inhabitants.Such enterprise zone designation shall only be made if the area in the city which is to be included in the enterprise zone meets all the requirements of section 135.205.

13.In addition to the number of enterprise zones authorized in this chapter, the department of economic development shall designate one such zone for any city of the fourth classification with more than thirty thousand three hundred but less than thirty thousand four hundred inhabitants and located in any county of the first class with a charter form of government and with more than six hundred thousand but less than seven hundred thousand inhabitants.Such enterprise zone designation shall only be made if the area in the city which is to be included in the enterprise zone meets all the requirements of section 135.205.

135.211.In addition to any other enterprise zones authorized in this chapter, the department of economic development shall designate one enterprise zone which shall have boundaries that are the same as any county of the third classification without a township form of government and with more than forty-one thousand one hundred but less than forty-one thousand two hundred inhabitants and the portion of any city of the fourth classification with more than one thousand eight hundred but less than one thousand nine hundred and located in more than one county that is not located in any county of the third classification without a township form of government and with more than forty-one thousand one hundred but less than forty-one thousand two hundred inhabitants.Such enterprise zone designation shall only be made if the area which is to be included in the enterprise zone meets all the requirements of section 135.205.

135.212.In addition to any other enterprise zones authorized in this chapter, the department of economic development shall designate one enterprise zone which shall have boundaries that are the same as any home rule city with more than eighty-four thousand five hundred but less than eighty-four thousand six hundred inhabitants located in any county of the first classification with more than one hundred thirty-five thousand four hundred but less than one hundred thirty-five thousand five hundred inhabitants.Such enterprise zone designation shall only be made if the area which is to be included in the enterprise zone meets all the requirements of section 135.205.

135.313.1.Any person, firm or corporation who engages in the business of producing charcoal or charcoal products in the state of Missouri shall be eligible for a tax credit on income taxes otherwise due pursuant to chapter 143, RSMo, except sections 143.191 to 143.261, RSMo, as an incentive to implement safe and efficient environmental controls.The tax credit shall be equal to fifty percent of the purchase price of the best available control technology equipment connected with the production of charcoal in the state of Missouri or, if the taxpayer manufactures such equipment, fifty percent of the manufacturing cost of the equipment, to and including the year the equipment is put into service.The credit may be claimed for a period of eight years beginning with the 1998 calendar year and is to be a tax credit against the tax otherwise due.

2.Any amount of credit which exceeds the tax due shall not be refunded but may be carried over to any subsequent taxable year, not to exceed seven years.

3.The charcoal producer may elect to assign to a third party the approved tax credit.Certification of assignment and other appropriate forms must be filed with the Missouri department of revenue and the department of [economic development] natural resources.

4.When applying for a tax credit, the charcoal producer specified in subsection 1 of this section shall make application for the credit to the division of environmental quality of the department of natural resources.The application shall identify the specific best available control technology equipment and the purchase price, or manufacturing cost of such equipment.The director of the department of natural resources is authorized to require permits to construct prior to the installation of best available control technology equipment and other information which he or she deems appropriate.

5.The director of the department of natural resources [in conjunction with the department of economic development] shall certify to the department of revenue that the best available control technology equipment meets the requirements to obtain a tax credit as specified in this section.

135.478.As used in sections 135.481 to 135.487, the following terms mean:

(1)"Department", the department of economic development;

(2)"Director", the director of the department of economic development;

(3)"Distressed community", as defined in section 135.530;

(4)"Eligible costs for a new residence", expenses incurred for property acquisition, development, site preparation [other than demolition], surveys, architectural and engineering services and construction and all other necessary and incidental expenses incurred for constructing a new market rate residence, which is or will be owner-occupied, which is not replacing a national register listed or local historic structure; except that, costs paid for by the taxpayer with grants or forgivable loans, other than tax credits, provided pursuant to state or federal governmental programs are ineligible;

(5)"Eligible costs for rehabilitation", expenses incurred for the renovation or rehabilitation of an existing residence or structure including site preparation, surveys, architectural and engineering services, construction, modification, expansion, remodeling, structural alteration, replacements and alterations; except that, costs paid for by the taxpayer with grants or forgivable loans other than tax credits provided pursuant to state or federal governmental programs are ineligible;

(6)"Eligible residence", a single-family residence or a condominium or residence within a multiple residential structure or a structure containing multiple single-family residences forty years of age or older, located in this state and not within a distressed community as defined by section 135.530, which is occupied or intended to be or occupied long-term by the owner or offered for sale at market rate for owner-occupancy and which is either located within a United States census block group which, if in a metropolitan statistical area, has a median household income of less than ninety percent, but greater than or equal to seventy percent of the median household income for the metropolitan statistical area in which the census block group is located, or which, if located within a United States census block group in a [nonmetropolitan] county that is not located in a metropolitan statistical area, has a median household income of less than ninety percent, but greater than or equal to seventy percent of the median household income for [the nonmetropolitan areas in the state] all counties not located within a metropolitan statistical area;

(7)"Flood plain", any land or area susceptible to being inundated by water from any source or located in a one hundred-year flood plain area determined by Federal Emergency Management Agency mapping as subject to flooding;

(8)"New residence", a residence constructed on land which if located within a distressed community has either been vacant for at least two years or is or was occupied by a structure which has been condemned by the local entity in which the structure is located or which, if located outside of a distressed community but within a census block group as described in subdivision (6) or (10) of this section, either replaces a residence forty years of age or older demolished for purposes of constructing a replacement residence, or which is constructed on vacant property which has been classified for not less than forty continuous years as residential or utility, commercial, railroad or other real property pursuant to article X, section 4(b) of the Missouri Constitution, as defined in section 137.016, RSMo; except that, no new residence shall be constructed in a flood plain or on property used for agricultural purposes except as otherwise provided herein. [In a distressed community,] The term "new residence" shall include condominiums, owner-occupied units or other units intended to be owner-occupied in multiple unit structures or as separate adjacent single-family units;

(9)"Project", new construction, rehabilitation or substantial rehabilitation of a residence or residences, whether comprised of one structure containing multiple single-family residences or multiple individual structures that [qualifies] qualify for a tax credit pursuant to sections 135.475 to 135.487;

(10)"Qualifying residence", a single-family residence, forty years of age or older, located in this state which is occupied or intended to be occupied long-term by the owner or offered for sale at market rate for owner-occupancy and which is either located within a United States census block group which, if in a metropolitan statistical area [or nonmetropolitan statistical area within a United States census block group which has a median household income of less than seventy percent of the median household income for the metropolitan statistical area or nonmetropolitan area, respectively], has a median household income of less than seventy percent of the median household income for the metropolitan statistical area in which the census block group is located, or which, if located within a United States census block group that is located in a county that is not located in a metropolitan statistical area, has a median household income of less than seventy percent of the median household income for all counties not located within a metropolitan statistical area or which is located within a distressed community.A qualifying residence shall include a condominium or residence within a multiple residential structure or a structure containing multiple single-family residences which is located within a distressed community;

(11)"Substantial rehabilitation", rehabilitation the costs of which exceed fifty percent of either the purchase price or the cost basis of the structure immediately prior to rehabilitation; provided that, the structure is at least fifty years old notwithstanding any provision of sections 135.475 to 135.487 to the contrary;

(12)"Tax liability", the tax due pursuant to chapter 143, 147 or 148, RSMo, other than taxes withheld pursuant to sections 143.191 to 143.265, RSMo;

(13)"Taxpayer", any person, partnership, corporation, trust or limited liability company.

135.481.1.(1)Any taxpayer who incurs eligible costs for a new residence located in a distressed community or within a census block group as described in subdivision (6) or (10) of section 135.478, or for a multiple unit condominium described in subdivision (2) of this subsection, shall receive a tax credit equal to fifteen percent of such costs against his or her tax liability.The tax credit shall not exceed forty thousand dollars per new residence in any ten-year period.

(2)For the purposes of this section, a "multiple unit condominium" is one that is intended to be owner occupied, which is constructed on property subject to an industrial development contract as defined in section 100.310, RSMo, [and] or which lies within an area with a city zoning classification of urban redevelopment district, or for condominium use, established after January 1, 2000, and before December 31, [2001] 2003, and which is constructed in connection with the qualified rehabilitation of a structure more than ninety years old eligible for the historic structures rehabilitation tax credit described in sections 253.545 to 253.559, RSMo, [and] which is under way by January 1, [2000] 2002, and completed by January 1, [2002] 2003.

2.[Any taxpayer who incurs eligible costs for a new residence located within a census block as described in subdivision (6) of section 135.478 shall receive a tax credit equal to fifteen percent of such costs against his or her tax liability.The tax credit shall not exceed twenty-five thousand dollars per new residence in any ten-year period.

3.]Any taxpayer who is not performing substantial rehabilitation and who incurs eligible costs for rehabilitation of an eligible residence or a qualifying residence shall receive a tax credit equal to twenty-five percent of such costs against his or her tax liability.The minimum eligible costs for rehabilitation of an eligible residence shall be ten thousand dollars. The minimum eligible costs for rehabilitation of a qualifying residence shall be five thousand dollars.The tax credit shall not exceed twenty-five thousand dollars in any ten-year period.

[4.]3.Any taxpayer who incurs eligible costs for substantial rehabilitation of a qualifying residence shall receive a tax credit equal to thirty-five percent of such costs against his or her tax liability.The minimum eligible costs for substantial rehabilitation of a qualifying residence shall be ten thousand dollars.The tax credit shall not exceed seventy thousand dollars in any ten-year period.

[5.]4.A taxpayer shall be eligible to receive tax credits for new construction or rehabilitation pursuant to only one subsection of this section.

[6.]5.No tax credit shall be issued pursuant to this section for any structure which is in violation of any municipal or county property, maintenance or zoning code.

[7.]6.No tax credit shall be issued pursuant to sections 135.475 to 135.487 for the construction or rehabilitation of rental property.

135.484.1.Beginning January 1, 2000, tax credits shall be allowed pursuant to section 135.481 in an amount not to exceed sixteen million dollars per year.Of this total amount of tax credits in any given year, eight million dollars shall be set aside for projects in areas described in subdivision (6) of section 135.478 and eight million dollars for projects in areas described in subdivision (10) of section 135.478.The maximum tax credit for a project consisting of multiple-unit qualifying residences in a distressed community and commenced before August 28, 2003, shall not exceed three million dollars, and the maximum tax credit for a project commenced on or after August 28, 2003, shall not exceed one million five hundred thousand dollars.If, by October first of any calendar year, the director has issued all eight million dollars of tax credits allowed for projects in areas described in subdivision (6) of section 135.478, but not for projects in areas described in subdivision (10) of section 135.478, or vice versa, the director shall reallocate seventy percent of any credits not allocated to finally approved applications for issuance to taxpayers which:

(1)Are engaged in projects in the area in which tax credits totaling eight million dollars have already been issued for the same year; and

(2)Have already applied for, but have not yet been issued, tax credits pursuant to section 135.487 for the same year.

Reallocated credits shall be issued pursuant to section 135.487; except that, the maximum reallocated tax credit for any project shall not exceed five hundred thousand dollars.

2.Any amount of credit which exceeds the tax liability of a taxpayer for the tax year in which the credit is first claimed may be carried back to any of the taxpayer's three prior tax years and carried forward to any of the taxpayer's five subsequent tax years.A certificate of tax credit issued to a taxpayer by the department may be assigned, transferred, sold or otherwise conveyed.Whenever a certificate of tax credit is assigned, transferred, sold or otherwise conveyed, a notarized endorsement shall be filed with the department specifying the name and address of the new owner of the tax credit and the value of the credit.

3.The tax credits allowed pursuant to sections 135.475 to 135.487 may not be claimed in addition to any other state tax credits, with the exception of the historic structures rehabilitation tax credit authorized pursuant to sections 253.545 to 253.559, RSMo, which insofar as sections 135.475 to 135.487 are concerned may be claimed only in conjunction with the tax credit allowed pursuant to subsection [4] 3 of section 135.481.In order for a taxpayer eligible for the historic structures rehabilitation tax credit to claim the tax credit allowed pursuant to subsection [4] 3 of section 135.481, the taxpayer must comply with the requirements of sections 253.545 to 253.559, RSMo, and in such cases, the amount of the tax credit pursuant to subsection [4] 3 of section 135.481 shall be limited to the lesser of twenty percent of the taxpayer's eligible costs or forty thousand dollars.

135.487.1.To obtain any credit allowed pursuant to sections 135.475 to 135.487, a taxpayer shall submit to the department, for preliminary approval, an application for tax credit.The director shall, upon final approval of an application and presentation of acceptable proof of substantial completion of construction, issue the taxpayer a certificate of tax credit.In the case of projects involving the new construction, rehabilitation or substantial rehabilitation of more than one residence, one application for tax credit may be submitted to the department for preliminary approval for the entire project, and the director shall issue the taxpayer a certificate of tax credit upon final approval of an application and presentation of acceptable proof of substantial completion of construction for each individual residence rather than delaying issuance of a tax credit pursuant to sections 135.475 to 135.487 until substantial completion of the entire project.The director shall issue all credits allowed pursuant to sections 135.475 to 135.487 in the order the applications are received.In the case of a taxpayer other than an owner-occupant, the director shall not delay the issuance of a tax credit pursuant to sections 135.475 to 135.487 until the sale of a residence at market rate for owner-occupancy.A taxpayer, taxpayer other than an owner-occupant who receives a certificate of tax credit pursuant to sections 135.475 to 135.487 shall, within thirty days of the date of the sale of a residence, furnish to the director satisfactory proof that such residence was sold at market rate for owner-occupancy.If the director reasonably determines that a residence was not in good faith intended for long-term owner occupancy, the director make revoke any tax credits issued and seek recovery of any tax credits issued pursuant to section 620.017, RSMo.

2.The department may cooperate with a municipality or a county in which a project is located to help identify the location of the project, the type and eligibility of the project, the estimated cost of the project and the completion date of the project.

3.The department may promulgate such rules or regulations or issue administrative guidelines as are necessary to administer the provisions of sections 135.475 to 135.487.No rule or portion of a rule promulgated pursuant to the authority of this section shall become effective unless it has been promulgated pursuant to the provisions of chapter 536, RSMo.

4.The department shall conduct annually a comprehensive program evaluation illustrating where the tax credits allowed pursuant to sections 135.475 to 135.487 are being utilized, explaining the economic impact of such program and making recommendations on appropriate program modifications to ensure the program's success.

135.500.1.Sections 135.500 to 135.529 shall be known and may be cited as the "Missouri Certified Capital Company Law".

2.As used in sections 135.500 to 135.529, the following terms mean:

(1)"Affiliate of a certified company":

(a)Any person, directly or indirectly owning, controlling or holding power to vote ten percent or more of the outstanding voting securities or other ownership interests of the Missouri certified capital company;

(b)Any person ten percent or more of whose outstanding voting securities or other ownership interest are directly or indirectly owned, controlled or held with power to vote by the Missouri certified capital company;

(c)Any person directly or indirectly controlling, controlled by, or under common control with the Missouri certified capital company;

(d)A partnership in which the Missouri certified capital company is a general partner;

(e)Any person who is an officer, director or agent of the Missouri certified capital company or an immediate family member of such officer, director or agent;

(2)"Applicable percentage", one hundred percent;

(3)"Capital in a qualified Missouri business", any debt, equity or hybrid security, of any nature and description whatsoever, including a debt instrument or security which has the characteristics of debt but which provides for conversion into equity or equity participation instruments such as options or warrants which are acquired by a Missouri certified capital company or a qualified investing entity as a result of a transfer of cash to a business[.Capital in a qualified Missouri business shall not include secured debt instruments];

(4)"Certified capital", an investment of cash by an investor in a Missouri certified capital company;

(5)"Certified capital company", any partnership, corporation, trust or limited liability company, whether organized on a profit or not-for-profit basis, that is located, headquartered and registered to conduct business in Missouri that has as its primary business activity, the investment of cash in qualified Missouri businesses, and which is certified by the department as meeting the criteria of sections 135.500 to 135.529;

(6)"Department", the Missouri department of economic development;

(7)"Director", the director of the department of economic development or a person acting under the supervision of the director;

(8)"Investor", any insurance company that contributes cash;

(9)"Liquidating distribution", payments to investors or to the certified capital company from earnings;

(10)"Person", any natural person or entity, including a corporation, general or limited partnership, trust or limited liability company;

(11)"Qualified distribution", any distribution or payment to equity holders of a certified capital company in connection with the following:

(a)Reasonable costs and expenses of forming, syndicating, managing and operating the certified capital company;

(b)Management fees for managing and operating the certified capital company; and

(c)Any increase in federal or state taxes, penalties and interest, including those related to state and federal income taxes, of equity owners of a certified capital company which related to the ownership, management or operation of a certified capital company;

(12)"Qualified investing entity", any partnership, corporation, trust, or limited liability company, whether organized on a for profit or not-for-profit basis, that:

(a)Is registered to do business in this state;

(b)Is a wholly owned subsidiary of a certified capital company or otherwise affiliated with and under common control with a certified capital company; and

(c)Has been designated as a qualified investing entity by such certified capital company.

Such designation shall be effective upon delivery by the certified capital company of written notice of the designation to the department. A qualified investing entity may raise debt or equity capital for investment, but such capital shall not be considered certified capital.Any qualified investment made by a qualified investing entity after the effective date of this act shall be deemed to have been made by a certified capital company that designated the qualified investing entity as such; provided that no qualified investment may be deemed to have been made by more than one certified capital company.

[(12)](13)"Qualified investment", the investment of cash by a Missouri certified capital company or a qualified investing entity in such a manner as to acquire capital in a qualified Missouri business;

[(13)](14)"Qualified Missouri business", an independently owned and operated business, which is headquartered and located in Missouri and which is in need of venture capital and cannot obtain conventional financing.Such business shall have no more than two hundred employees, eighty percent of which are employed in Missouri.Such business shall be involved in commerce for the purpose of manufacturing, processing or assembling products, conducting research and development, or providing services in interstate commerce, but excluding retail, real estate, real estate development, insurance and professional services provided by accountants, lawyers or physicians.[If such business has been in existence for three years or less, its gross sales during its most recent complete fiscal years shall not have exceeded four million dollars.If such business has been in existence for longer than three years, its gross sales during its most recent complete fiscal year shall not have exceeded three million dollars.]At the time a certified capital company or qualified investing entity makes an initial investment in a business, such business shall be a small business concern that meets the requirements of the United States Small Business Administration's qualification size standards for its venture capital program, as defined in Section 13 CFR 121.301 (c).Any business which is classified as a qualified Missouri business at the time of the first investment in such business by a Missouri certified capital company or qualified investing entity shall, for a period of seven years from the date of such first investment, remain classified as a qualified Missouri business and may receive follow-on investments from any Missouri certified capital company or qualified investing entity and such follow-on investments shall be qualified investments even though such business may not meet the other qualifications of this subsection at the time of such follow-on investments;

[(14)](15)"State premium tax liability", any liability incurred by an insurance company pursuant to the provisions of section 148.320, 148.340, 148.370 or 148.376, RSMo, and any other related provisions, which may impose a tax upon the premium income of insurance companies after January 1, 1997.

135.503.1.Any investor that makes an investment of certified capital shall, in the year of investment, earn a vested credit against state premium tax liability equal to the applicable percentage of the investor's investment of certified capital.An investor shall be entitled to take up to ten percent of the vested credit in any taxable year of the investor.Any time after three years after August 28, 1996, the director, with the approval of the commissioner of administration, may reduce the applicable percentage on a prospective basis.Any such reduction in the applicable percentage by the director shall not have any effect on credits against state premium tax liability which have been claimed or will be claimed by any investor with respect to credits which have been earned and vested pursuant to an investment of certified capital prior to the effective date of any such change.

2.An insurance company claiming a state premium tax credit earned through an investment in a certified capital company shall not be required to pay any additional retaliatory tax levied pursuant to section 375.916, RSMo, as a result of claiming such credit.

3.The credit against state premium tax liability which is described in subsection 1 of this section may not exceed the state premium tax liability of the investor for any taxable year.All such credits against state premium tax liability may be carried forward indefinitely until the credits are utilized.The maximum amount of certified capital in one or more certified capital companies for which earned and vested tax credits will be allowed in any year to any one investor or its affiliates shall be limited to ten million dollars.

4.Except as provided in subsection 5 of this section, the aggregate amount of certified capital for which earned and vested credits against state premium tax liability are allowed for all persons pursuant to sections 135.500 to 135.529 shall not exceed the following amounts: for calendar year 1996, $0.00; for calendar year 1997, an amount which would entitle all Missouri certified capital company investors to take aggregate credits of five million dollars; and for any year thereafter, an additional amount to be determined by the director but not to exceed aggregate credits of ten million dollars for any year with the approval of the commissioner of administration and reported to the general assembly as provided in subsection 2 of section 33.282, RSMo, provided that the amount so determined shall not impair the ability of an investor with earned and vested credits which have been allowed in previous years to take them, pursuant to subsection 1 of this section.During any calendar year in which the limitation described in this subsection will limit the amount of certified capital for which earned and vested credits against state premium tax liability are allowed, certified capital for which credits are allowed will be allocated in order of priority based upon the date of filing of information described in subdivision (1) of subsection 5 of section 135.516.Certified capital limited in any calendar year by the application of the provisions of this subsection shall be allowed and allocated in the immediately succeeding calendar year in the order of priority set forth in this subsection.The department shall make separate allocations of certified capital for which credits are allowed under the limitations described in this subsection and under the limitations described in subsection 5 of this section.

5.In addition to the maximum amount pursuant to subsection 4 of this section, the aggregate amount of certified capital for which earned and vested credits against state premium tax liability are allowed for persons pursuant to sections 135.500 to 135.529 shall be the following: for calendar year 1999 and for any year thereafter, an amount to be determined by the director which would entitle all Missouri certified capital company investors to take aggregate credits not to exceed four million dollars for any year with the approval of the commissioner of administration and reported to the general assembly as provided in subsection 2 of section 33.282, RSMo, provided that the amount so determined shall not impair the ability of an investor with earned and vested credits which have been allowed in previous years or pursuant to the provisions of subsection 4 of this section to take them, pursuant to subsection 1 of this section.For purposes of any requirement regarding the schedule of qualified investments for certified capital for which earned and vested credits against state premium tax liability are allowed pursuant to this subsection only, the definition of a "qualified Missouri business" as set forth in subdivision [(13)] (14) of subsection 2 of section 135.500 means a Missouri business that is located in a distressed community as defined in section 135.530, and meets all of the requirements of subdivision [(13)] (14) of subsection 2 of section 135.500[, except that its gross sales during its most recent complete fiscal year shall not have exceeded five million dollars]. During any calendar year in which the limitation described in this subsection limits the amount of additional certified capital for which earned and vested credits against state premium tax liability are allowed, additional certified capital for which credits are allowed shall be allocated in order of priority based upon the date of filing of information described in subdivision (1) of subsection 5 of section 135.516 with respect to such additional certified capital.The department shall make separate allocations of certified capital for which credits are allowed under the limitations described in this subsection and under the limitations described in subsection 4 of this section.No limitation applicable to any certified capital company with respect to certified capital for which credits are allowed pursuant to subsection 4 of this section shall limit the amount of certified capital for which credits are allowed pursuant to this subsection.No limitation applicable to any certified capital company with respect to certified capital for which credits are allowed pursuant to this subsection shall limit the amount of certified capital for which credits are allowed pursuant to subsection 4 of this section.

6.The department shall advise any Missouri certified capital company, in writing, within fifteen days after receiving the filing described in subdivision (1) of subsection 5 of section 135.516 whether the limitations of subsection 3 of this section then in effect will be applicable with respect to the investments and credits described in such filing with the department.

135.516.1.To continue to be certified, a Missouri certified capital company shall make qualified investments according to the following schedule:

(1)Within two years after the date on which a Missouri certified capital company is designated as a Missouri certified capital company at least twenty-five percent of its certified capital shall be, or have been, placed in qualified investments;

(2)Within three years after the date on which a Missouri certified capital company is designated as a Missouri certified capital company at least forty percent of its certified capital shall be, or have been, placed in qualified investments;

(3)Within four years after the date on which a Missouri certified capital company is designated as a Missouri certified capital company, at least fifty percent of its total certified capital shall be, or have been, placed in qualified investments.A Missouri certified capital company may not make an investment in an affiliate of the certified capital company.For the purposes of this subsection, if a legal entity is not an affiliate before a certified capital company initially invests in the entity, it will not be an affiliate if a certified capital company provides additional investment in such entity subsequent to its initial investment;

(4)A certified capital company, at least fifteen working days prior to making what it determines to be an initial qualified investment in a specific qualified Missouri business, shall certify to the department that the company in which it or a qualified investing entity proposes to invest meets the definition of a qualified Missouri business pursuant to subdivision (14) of subsection 2 of section 135.500.The certified capital company shall state the amount of capital it or a qualified investing entity intends to invest and the name of the business in which it or a qualified investing entity intends to invest.The certified capital company shall also provide to the department an explanation of its determination that the business meets the definition of a qualified Missouri business.If the department determines that the business does not meet the definition of a qualified Missouri business, it shall, within the fifteen-working-day period prior to the making of the proposed investment, notify the certified capital company of its determination and an explanation thereof.If the department fails to notify the certified capital company with respect to the proposed investment within the fifteen-working-day period prior to the making of the proposed investment, the company in which the certified capital company or a qualified investing entity proposes to invest shall be deemed to be a qualified Missouri business.If a certified capital company fails to notify the department prior to making an initial investment in a business, the department may subsequently determine that the business in which the certified capital company or a qualified investing entity invested was not a qualified Missouri business even though the business, at the time of the investment, met the requirements of subdivision [(14)] (15) of subsection 2 of section 135.500;

(5)All certified capital which is not required to be placed in qualified investments or which has been placed in qualified investments and can be received by the company, may be held or invested in such manner as the Missouri certified capital company, in its discretion, deems appropriate.The proceeds of all certified capital which is received by a certified capital company after it was originally placed in qualified investments may be placed again in qualified investments and shall count toward any requirement in sections 135.500 to 135.529 with respect to placing certified capital in qualified investments.

2.A certified capital company may make qualified distributions at any time.In order to make distributions, other than qualified distributions, a certified capital company must have [placed] made cumulative qualified investments, including those made through a qualified investing entity, in an amount cumulatively equal to at least one hundred percent of its certified capital [in qualified investments]. Cumulative distributions to equity holders, other than qualified distributions, in excess of the certified capital company's original certified capital and any additional capital contributions to the certified capital company shall be subject to audit by a nationally recognized certified public accounting firm acceptable to the department, at the expense of the certified capital company.The audit shall determine whether aggregate cumulative distributions to all investors and equity holders, other than qualified distributions, when combined with all tax credits utilized by investors pursuant to sections 135.500 to 135.529, have resulted in an annual internal rate of return of fifteen percent computed on the sum of total original certified capital of the certified capital company and any additional capital contributions to the certified capital company.Twenty-five percent of distributions made, other than qualified distributions, in excess of the amount required to produce a fifteen percent annual internal rate of return, as determined by the audit, shall be payable by the certified capital company to the Missouri development finance board.Distributions or payments to debt holders of a certified capital company, however, may be made without restriction with respect to debt owed to them by a certified capital company.A debt holder that is also an investor or equity holder of a certified capital company may receive distributions or payments with respect to such debt without restriction.

3.No qualified investment, including qualified investments made by a qualified investing entity that are deemed to have been made by a certified capital company, may be made at a cost to a Missouri certified capital company greater than fifteen percent of the total certified capital under management of the Missouri certified capital company at the time of investment.

4.Documents and other materials submitted by Missouri certified capital companies or by businesses for purposes of the continuance of certification may be deemed "closed records" pursuant to the provisions of section 620.014, RSMo.

5.Each Missouri certified capital company shall report the following to the department:

(1)As soon as practicable after the receipt of certified capital, the name of each investor from which the certified capital was received, the amount of each investor's investment of certified capital and tax credits computed without regard to any limitations under subsection 3 of section 135.503, and the date on which the certified capital was received;

(2)On a quarterly basis, the amount of the Missouri certified capital company's certified capital at the end of the quarter, whether or not the Missouri certified capital company has invested, together with any investments made by a qualified investing entity that are deemed to have been made by the certified capital company, more than fifteen percent of the total certified capital under management in any one company, and all qualified investments that the Missouri certified capital company has made or has been deemed to have been made through a qualified investing entity;

(3)Each Missouri certified capital company shall provide annual audited financial statements to the department which include an opinion of an independent certified public accountant to the department within ninety days of the close of the fiscal year.At the same time, the certified capital company shall also provide audited financial statements for any qualified investing entity that has made qualified investments on its behalf, unless the financial results of such qualified investing entity are included in the consolidated financial statements of the certified capital company.The audit shall address the methods of operation and conduct of the business of the Missouri certified capital company to determine if the Missouri certified capital company is complying with the statutes and program rules and that the funds received by the Missouri certified capital company have been invested as required within the time limits provided by sections 135.500 to 135.529.

135.520.1.The division of finance of the department of economic development shall conduct an annual review of each Missouri certified capital company and any qualified investing entities designated by it to determine if the Missouri certified capital company is abiding by the requirements of certifications, to advise the Missouri certified capital company as to the certification status of its qualified investments and to ensure that no investment has been made in violation of sections 135.500 to 135.529.The cost of the annual review shall be paid by each Missouri certified capital company according to a reasonable fee schedule adopted by the department.The division of finance shall report its findings to the department as soon as practicable following completion of the audit.

2.Any material violation of sections 135.500 to 135.529 shall be grounds for decertification under this section.If the department determines that a company is not in compliance with any requirements for continuing in certification, it shall, by written notice, inform the officers of the company and the board of directors, managers, trustees or general partners that they may be decertified in one hundred twenty days from the date of mailing of the notice, unless they correct the deficiencies and are again in compliance with the requirements for certification.

3.At the end of the one hundred twenty-day grace period, if the Missouri certified capital company is still not in compliance, the department may send a notice of decertification to the company and to the directors of the department of revenue and department of insurance.Decertification of a Missouri certified capital company prior to the certified capital company meeting all requirements of subdivisions (1) to (3) of subsection 1 of section 135.516 shall cause the recapture of all premium tax credits previously claimed by an investor and the forfeiture of all future credits to be claimed by an investor with respect to its investment in the certified capital company.Decertification of a Missouri certified capital company after it has met all requirements of subdivisions (1) to (3) of subsection 1 of section 135.516 shall cause the forfeiture of premium tax credits for the taxable year of the investor in which the decertification arose and for future taxable years with no recapture of tax credits obtained by an investor with respect to the investor's tax years which ended before the decertification occurred.Once a certified capital company has [invested] made cumulative qualified investments, including those made through a qualified investing entity and deemed to have been made by the certified capital company, in an amount equal to at least one hundred percent of its certified capital [in qualified Missouri businesses], all future premium tax credits to be claimed by investors with respect to said certified capital company pursuant to sections 135.500 to 135.529 shall be nonforfeitable.Once a certified capital company has [invested] made cumulative qualified investments, including those made through a qualified investing entity and deemed to have been made by the certified capital company, in an amount equal to at least one hundred percent of its certified capital [in qualified Missouri businesses] and has met all other requirements under sections 135.500 to 135.529, it shall no longer be subject to regulation by the department except with respect to the payment of distributions to the Missouri development finance board.

135.530.For the purposes of sections 100.010, 100.710 and 100.850, RSMo, sections 135.110, 135.200, 135.258, 135.313, 135.403, 135.405, 135.503, 135.530 and 135.545, section 215.030, RSMo, sections 348.300 and 348.302, RSMo, and sections 620.1400 to 620.1460, RSMo, "distressed community" means either a Missouri municipality within a metropolitan statistical area which has a median household income of under seventy percent of the median household income for the metropolitan statistical area, according to the last decennial census, or a United States census block group or contiguous group of block groups within a metropolitan statistical area which has a population of at least [two thousand] five hundred, and each block group having a median household income of under [seventy] seventy-five percent of the median household income for the metropolitan area in Missouri, according to the last decennial census.In addition the definition shall include municipalities not in a metropolitan statistical area, with a median household income of under seventy percent of the median household income for the nonmetropolitan areas in Missouri according to the last decennial census or a census block group or contiguous group of block groups which has a population of at least [two thousand] five hundred each block group having a median household income of under [seventy] seventy-five percent of the median household income for the nonmetropolitan areas of Missouri, according to the last decennial census.In metropolitan statistical areas, the definition shall include areas that are designated as either a federal empowerment zone; or a federal enhanced enterprise community; or a state enterprise zone that was originally designated before January 1, 1986, but will not include expansions of such state enterprise zones done after March 16, 1988.

135.800.1.Sections 135.800 to 135.820 shall be known and may be cited as the "Sustainable Neighborhoods and Communities Tax Credit Act".

2.As used in sections 135.800 to 135.820, the following terms mean:

(1)"Approved project", a project approved by the director to participate in the program established by sections 135.800 to 135.820;

(2)"Blighted area", that portion of a city within which the legislative authority of such city determines that by reason of age, obsolescence, inadequate or outmoded design, or physical deterioration have become economic and social liabilities, and that such conditions are conducive to ill health, transmission of disease, crime, or inability to pay reasonable taxes;

(3)"Business", a private for-profit entity doing business in the state of Missouri;

(4)"Capital campaign project", the raising of funds for the acquisition, construction, rehabilitation, or permanent improvement to real property to be used by a community-based organization for the provision of direct services or youth services;

(5)"Community bank" shall have the same meaning as prescribed in subdivision (2) of section 135.400;

(6)"Community-based organization":

(a)A private organization that is representative of a community, or a significant segment of a community, that:

a.Holds a ruling from the Internal Revenue Service of the United States Department of the Treasury that the organization is exempt from income taxation pursuant to Section 501(c)(3) of the Internal Revenue Code; or

b.Is incorporated in the state of Missouri as a not-for-profit corporation pursuant to chapter 355, RSMo; or

(b)A community development corporation designated as such by the United States government pursuant to Title VII of the Economic Opportunity Act of 1964;

(7)"Community development financial institution" shall have the same meaning as prescribed in Section 103 of the Riegle Community Development and Regulatory Improvement Act of 1994, 12 U.S.C.A. Section 4702;

(8)"Community services", services designed to minimize the effects of poverty, furnished primarily to impoverished people in the state of Missouri;

(9)"Contribution", a donation of cash, property, or services, except that donations of property or services may be limited and shall be valued as provided by the department;

(10)"Department", the department of economic development;

(11)"Direct services", community services, workforce training services, and workforce support services;

(12)"Director", the director of the department of economic development or a person acting under the supervision of the director;

(13)"Impoverished people", people in Missouri approved as such by the department.Such approval shall be made on the basis of generally recognized low-income criteria used by federal and state agencies;

(14)"Person", any natural person or entity, including a corporation, general or limited partnership, trust, or limited liability company;

(15)"Program", the sustainable neighborhoods and communities tax credit program created by sections 135.800 to 135.820;

(16)"Revitalization project", the furnishing of financial assistance, labor, material, or technical advice to aid in the physical improvement or rehabilitation of all or any part of a central business district that is a blighted area pursuant to an organized redevelopment effort;

(17)"Small business revolving loan project", a revolving loan program operated by a community-based organization, a community bank, or a community development financial institution;

(18)"Taxpayer", a person subject to the state income tax imposed by chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, subject to the annual corporation franchise tax imposed by chapter 147, RSMo, or an insurance company paying an annual tax on its gross premium receipts in this state, or other financial institution paying taxes to the state of Missouri or any political subdivision of this state pursuant to chapter 148, RSMo;

(19)"Workforce support services", services such as transportation assistance, child care assistance, and permanent housing assistance that help support an individual's ability to prepare for and become employable, maintain employment, or be able to seek a higher grade of employment;

(20)"Workforce training services", any type of instruction to an individual who resides in the state of Missouri that enables the individual to acquire skills so that the individual can become employable or be able to seek a higher grade of employment;

(21)"Youth employment project", employment, internship, or apprenticeship programs in business or trades for persons no more than twenty-one years of age;

(22)"Youth services project", development, establishment, implementation, operation, and expansion of the following activities and programs:

(a)Programs to encourage school dropouts to reenter and complete high school or to complete a graduate equivalency degree program;

(b)New or existing youth clubs or associations;

(c)Mentor and role model programs;

(d)Drug and alcohol abuse prevention training programs for youth;

(e)Youth violence prevention;

(f)Youth activity centers;

(g)Youth outreach and counseling programs.

135.805.1.Categories of projects that are eligible to participate in the program are as follows:

(1)Direct services projects.A direct services project may be sponsored by either a community-based organization or a business.A direct services project sponsored by a business may be denied if, in the opinion of the director, the business's contribution can more consistently with the purposes of this program be made through contributions to a community-based organization.Tax credits will not be given to a business whose contributions are for activities that are a part of its normal course of business.For direct service projects, the tax credit shall be a percentage of the amount of funds expended by a business in providing direct services or a percentage of contributions made to a community-based organization for such project by a taxpayer;

(2)Capital campaign projects.For capital campaign projects, the tax credit shall be a percentage of the amount of contributions made to a community-based organization for the project by a taxpayer;

(3)Small business revolving loan program projects.For a small business revolving loan program project, the tax credit shall be a percentage of a taxpayer's investment in or contribution to a designated revolving loan fund of a community-based organization, community bank, or community development financial institution;

(4)Youth employment projects.For youth employment projects, the tax credit shall be a percentage of the amount paid to the intern or apprentice by a business that is a taxpayer;

(5)Physical revitalization projects.For physical revitalization projects, the tax credit shall be a percentage of contributions to a community-based organization for such project;

(6)Youth services projects.For youth services projects, the tax credit shall be a percentage of contributions made to a community-based organization for such project by a taxpayer.

2.The department, after public hearings, shall adopt a multiyear plan determining program priorities and any set-asides for the categories set forth in subsection 1 of this section.

3.A community-based organization or business entity seeking approval of a project for participation in the program shall submit an application containing information as required by the department in a format determined by the department.No application shall be approved which does not have the endorsement of the agency of local government within the area in which the project is engaging in program activities.The time frame for application submission will be announced by the department.The department shall review applications on at least an annual basis.

4.After review of applications, the director will approve or disapprove a project and establish the amount of tax credit to be granted.Projects may be approved for up to two years, corresponding with the state's fiscal year.Capital campaign projects may be approved for up to three years at the discretion of the director.

5.Approval of any project is effective as of the effective date of the contract between the department and the business or community-based organization.Approved project activities and the solicitation of contributions for approved project activities shall begin after the effective date of the contract.Any funds expended or contributions made before approval of a project for participation in the program shall be ineligible for a tax credit.

6.Approved projects will be notified by the department of the total amount of tax credits approved for the project and whether the credits are fifty percent credits or seventy percent credits, as provided in section 135.810.

7.The department of economic development shall prescribe the method for claiming the tax credits allowed in this section.

135.810.The percentage credit as set forth in subsection 1 of section 135.805 shall be fifty percent except that a seventy percent credit may be awarded for projects in a city, town, village, or unincorporated area that has fifteen thousand or less inhabitants as of the last decennial census and is located in a county which is either located in:

(1)An area that is not part of a standard metropolitan statistical area;

(2)A standard metropolitan statistical area but such county has only one city, town, or village which has more than fifteen thousand inhabitants; or

(3)A standard metropolitan statistical area and a substantial number of persons in such county derive their income from agriculture.

135.815.1.The tax credit authorized by sections 135.800 to 135.820 may be claimed by a taxpayer to offset the tax liability imposed by chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, chapter 147, RSMo, or chapter 148, RSMo, that becomes due in the tax year during which the investment or contribution was made.Where the amount of the credit exceeds the tax liability for the year in which the investment or contribution was made, the difference between the credit and the tax liability may be carried forward for the next three succeeding taxable years or until the full credit has been claimed, whichever first occurs.

2.Credits granted to a partnership, a limited liability company taxed as a partnership, an S corporation or multiple owners of property shall be passed through to the partners, members, or owners respectively pro rata.

3.The aggregate of all tax credits authorized pursuant to sections 135.800 to 135.820 shall not exceed fifteen million dollars in any year.

4.The department may revoke a tax credit certificate if any representation to the department in connection with the application proves to have been false when made or if the application violates any conditions established by the department and stated in the tax credit certificate.The revocation may be in full or in part as the department may determine.The department shall specify the amount of credit being revoked and shall send notice of the revocation to the taxpayer and to the state department of revenue.

135.818.The department may adopt such rules, statements of policy, procedures, forms, and guidelines as may be necessary for the implementation of this program.No rule or portion of a rule promulgated pursuant to the authority of this section shall become effective unless it has been promulgated pursuant to chapter 536, RSMo.

135.820.1.No projects may be approved by the director of the department of economic development for the neighborhood assistance program, the youth opportunities and violence prevention program, or the development tax credit program on or after August 28, 2003.

2.No tax credits may be issued by the department of economic development for the neighborhood assistance program, the youth opportunities and violence prevention program, or the development tax credit program on or after January 1, 2006.

3.This section shall expire on January 1, 2006.

135.827.1.As used in this section, the following terms mean:

(1)"Designated nonprofit oversight organization", a charitable organization in this state that is exempt from federal taxation pursuant to the Internal Revenue Code, as amended, designated to certify nonprofit educational assistance organizations, accept qualifying contributions, approve applications for the tax credit allowed by this section, distribute qualifying contributions to certified nonprofit educational assistance organizations, and coordinate with the director in administering the tax credit allowed by this section;

(2)"Director", the director of the department of economic development;

(3)"Income eligible student", any elementary or secondary school student who attends a school located in a home rule city with more than four hundred thousand inhabitants and located in more than one county, or in a city not within a county whose parents' or guardians' income would make the student eligible for a free or reduced price school lunch pursuant to the National School Lunch Act;

(4)"Nonprofit educational assistance organization", a charitable organization in this state that is exempt from federal taxation pursuant to the Internal Revenue Code, as amended, is certified by the director through a designated nonprofit oversight organization, and that allocates at least ninety percent of its annual revenue derived from contributions for which a credit is claimed pursuant to this section for educational assistance.The term nonprofit educational assistance organization does not include an organization that only provides scholarships to students of a particular school;

(5)"Qualified school", any elementary or secondary school situated in this state which a child may attend to satisfy the requirements of section 167.031, RSMo, and is not in violation of the Civil Rights Act of 1964;

(6)"Qualified student", an income eligible student who in the previous school year was enrolled in a state-funded school or who had received a scholarship as a qualified student and is not enrolled in a state-funded public school in the year in which the nonprofit educational assistance organization is providing a scholarship to that student.The term shall include all income eligible kindergarten students;

(7)"Qualifying contribution", a donation of cash, stock, bonds, or other marketable securities for purposes of claiming a tax credit pursuant to this section;

(8)"State tax liability", any liability incurred by a taxpayer pursuant to chapters 143, 147, and 153, RSMo, excluding withholding taxes pursuant to sections 143.191 to 143.265, RSMo, and related provisions;

(9)"Taxpayer", an individual subject to the state income tax imposed in chapter 143, RSMo, an individual, a firm, a partner in a firm, corporation, or a shareholder in an S corporation doing business in this state and subject to the state income tax imposed by chapter 143, RSMo, or a corporation subject to the annual corporation franchise tax imposed by chapter 147, RSMo, or an express company which pays an annual tax on its gross receipts in this state pursuant to chapter 153, RSMo.

2.For all tax years beginning on or after January 1, 2003, any taxpayer who makes contributions to a nonprofit educational assistance organization may claim a credit against the tax otherwise due pursuant to chapter 143, RSMo, other than taxes withheld pursuant to sections 143.191 to 143.265, RSMo, and chapters 147 and 153, RSMo, in an amount equal to fifty percent of the amount the taxpayer contributed during the tax year for which the credit is claimed; except that, no taxpayer shall claim a credit pursuant to this section for any contribution made by the taxpayer, or an agent of the taxpayer, on behalf of the taxpayer's dependent, or in the case of a business taxpayer, on behalf of the business's agent's dependent.Any amount of contribution subtracted from federal adjusted gross income shall be added back in the determination of Missouri adjusted gross income before the credit can be claimed.

3.The amount of the tax credit claimed shall not exceed the amount of the taxpayer's state tax liability for the tax year that the credit is claimed.Any amount of credit that the taxpayer is prohibited by this section from claiming in a tax year may be carried forward to any of the taxpayer's four subsequent taxable years.Except for any credit carried over pursuant to this section, no taxpayer shall claim a credit pursuant to this section unless the amount contributed to a nonprofit educational assistance organization is two hundred dollars or more.

4.The cumulative amount of tax credits which may be claimed by all taxpayers contributing to a nonprofit educational assistance organization in any one fiscal year shall not exceed five million dollars.The director shall establish a procedure by which, from the beginning of the fiscal year until some point in time later in the fiscal year to be determined by the director, the cumulative amount of tax credits are apportioned among all nonprofit educational assistance organizations.To the maximum extent possible, the director shall establish the procedure described in this subsection in such a manner as to ensure that taxpayers can claim all the tax credits possible up to the cumulative amount of tax credits available for the fiscal year.

5.The director shall determine, at least annually, which organizations in this state may be classified as a nonprofit educational assistance organization.The director may require a charity seeking classification as a nonprofit educational assistance organization to provide any information reasonably necessary to make such a determination.The director shall classify an organization as a nonprofit educational assistance organization if the organization qualifies as a nonprofit educational assistance organization as defined in this section.To qualify as a nonprofit educational assistance organization, the organization shall meet the following conditions:

(a)At least seventy percent of all qualifying contributions it receives during any given state fiscal year are allocated for the purpose of providing scholarships to any qualified student who attends a qualified school, and the organization gives priority in awarding scholarships to those students who demonstrate the greatest need for such scholarships, as defined by: children of inmates; children residing in a low-performing schools area; children residing within the boundaries of schools targeted for improvement under the No Child Left Behind Act of 2001 pursuant to public law 107-110; children residing within the boundaries of concerned schools and academically deficient schools pursuant to section 160.538, RSMo; children of schools in provisionally accredited districts; children attending schools in districts that participate in federal court ordered desegregation; or, children enrolled in classes that do not meet the Missouri school improvement minimum standards for class size used for accreditation purposes.Scholarship moneys may be used to cover applicable tuition, transportation, textbooks, supplies, and other related educational or extracurricular expenses.Any qualifying contributions not required to be allocated in accordance with this paragraph may be used to provide scholarships for income eligible students who attend qualified schools or may be used for the purposes set forth in paragraph (c) of this subdivision;

(b)Does not provide any scholarship to any qualified student for a single school year that exceeds three thousand four hundred dollars, which amount shall annually be increased for inflation based on increases in the Consumer Price Index rounded to the nearest fifty dollar increment, except that the nonprofit educational assistance organization may award scholarships to children with disabilities who are age three or older in any amount that is substantially comparable to the amount the state would have paid for such child, and except that scholarships may be awarded in amounts in excess of the limitation if the increased amount of any such scholarships is offset by a reduction in the monetary amount of the scholarships provided by the nonprofit educational assistance organization to nonqualifying students.To qualify for a scholarship, children with disabilities are not required to meet the income eligible student definition if the disabled child's parents or guardians have unreimbursed medical expenses in excess of seven and one-half percent of federal adjusted gross income;

(c)A nonprofit education assistance organization may allocate up to thirty percent of any qualifying contributions it receives during any given state fiscal year that are not required to be allocated pursuant to paragraphs (a) and (b) of this subdivision to directly assist any income eligible student who attends a public school in defraying the costs of private instructional assistance, including any related private educational supplies; for transportation to any public school to the extent that such transportation is not paid for by a school district or the state; for offsetting fees for out-of-school programs; for apprenticeship programs; for scholarship assistance for dropouts to pursue a GED or its equivalent; for grants for public school academic or extracurricular programs or for income eligible or qualified students to attend a qualified school;

(d)All interest accruing from contributions shall be used for educational assistance; and

(e)The amount of a qualifying contribution which may be accepted by a nonprofit educational assistance organization is limited to the amount needed to provide scholarships for qualifying students which the organization has identified and for which vacancies in eligible nonpublic schools have been identified.

6.The director shall establish a procedure by which a taxpayer can determine if an organization has been classified as a nonprofit educational assistance organization, and by which taxpayers can claim the tax credit pursuant to this section.

7.The funding authorized in this section shall be considered private, voluntary, nongovernmental funding.The providing of assistance by a nonprofit educational assistance organization shall not be construed to be a public appropriation, or the providing of public assistance to any school.

8.The director shall certify and enter into a contract with a designated nonprofit organization for the purpose of administering this section.A designated nonprofit oversight organization may be subject to an audit by the director.To qualify for designation, a nonprofit organization shall:

(a)Have the administrative capability to promote the success of the tax credit allowed by this section by recruiting and coordinating activities with all interested nonprofit educational assistance organizations in this state and certifying those nonprofit educational assistance organizations that meet the certification criteria set forth in subdivision (4) of this section;

(b)Demonstrate the ability to handle large volumes of and amounts of financial transactions and be able to resolve Internal Revenue Service compliance issues;

(c)Review the staff qualifications, evaluate fundraising capabilities, and confirm exempt status of the nonprofit educational assistance organizations;

(d)Create a standardized application for use by nonprofit educational assistance organizations;

(e)Insure that selected nonprofit educational assistance organizations operate in a fiscally neutral manner;

(f)Produce an annual report for the general assembly; and

(g)Complete other duties as required by the director.

9.If any portion of paragraph (a) of subsection 5 of this section is ruled invalid, unenforceable, or unconstitutional by a court of competent jurisdiction the qualifying contributions shall be distributed in accordance with paragraphs (b) and (c) of subsection 5 of this section.

10.Any rule or portion of a rule, as that term is defined in section 536.010, RSMo, that is created under the authority delegated in this section shall become effective only if it complies with and is subject to all of the provisions of chapter 536, RSMo, and, if applicable, section 536.028, RSMo.This section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, to review, to delay the effective date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted after August 28, 2003, shall be invalid and void.

135.875.1.Sections 135.875 to 135.895 shall be known and may be cited as the "Competitive Communities Tax Credit Act".

2.As used in sections 135.875 to 135.895, the following terms mean:

(1)"Approved project", a project approved by the director to participate in the program established by sections 135.875 to 135.895;

(2)"Business", a private for-profit entity doing business in the state of Missouri;

(3)"Department", the department of economic development;

(4)"Director", the director of the department of economic development or a person acting under the supervision of the director;

(5)"Distressed community", as defined in section 135.530;

(6)"Economic development project", a project that will improve, develop, or finance a new, existing, or expanding business, and will create, retain, or improve jobs in the state;

(7)"Program", the competitive communities tax credit program created by sections 135.875 to 135.895;

(8)"Targeted industry", an industry or one of a cluster of industries that is identified by the department as critical to the state's economic security and growth and affirmed as such by the joint committee on economic development policy and planning established in section 620.602, RSMo; and

(9)"Taxpayer", a person subject to the state income tax imposed by chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, subject to the annual corporation franchise tax imposed by chapter 147, RSMo, or an insurance company paying an annual tax on its gross premium receipts in this state, or other financial institution paying taxes to the state of Missouri or any political subdivision of this state pursuant to chapter 148, RSMo, or an express company paying an annual tax on its gross receipts in this state pursuant to chapter 153, RSMo.

135.880.1.The department, after public hearings, shall adopt a multiyear plan determining program priorities and any limitations on eligibility based upon, but not limited to, the following criteria:

(1)Whether a business is a targeted industry;

(2)The potential impact of a project on the economy of Missouri;

(3)The economy of the county where a project is to occur;

(4)Whether a project is in a distressed community;

(5)The payroll attributable to a project;

(6)The investment attributable to a project;

(7)The amount of the average wage paid by a business at a project;

(8)The costs to Missouri and the affected political subdivisions with respect to a project; and

(9)The financial assistance that is otherwise provided by Missouri and the affected political subdivisions.

2.A business seeking approval of an economic development project for participation in the program shall submit an application containing information as required by the department in a format determined by the department.

135.885.1.After review of an application, the director shall approve or disapprove a project and establish the amount of tax credit to be granted and the terms and conditions thereof.

2.An agreement between the business and the department regarding an approved project shall contain any provisions required by section 620.017, RSMo, and may also contain the following, as applicable:

(1)A detailed description of the project that is the subject of the agreement;

(2)A specific method for determining the number of persons employed in new or retained jobs at the project;

(3)A requirement that the business shall at least annually report to the department the number of new or retained jobs and the total amount of salaries and wages paid to persons in the new or retained jobs at the project;

(4)A requirement that the business shall provide written notification to the director not more than thirty days after the business makes or receives a proposal that would transfer the business's state tax liability obligations to a successor taxpayer;

(5)A requirement that the business shall maintain operations at the project for a specified period of time; and

(6)Any other performance conditions that the department determines are appropriate.

3.The department of economic development shall prescribe the method for claiming the tax credits allowed in this section.

135.890.1.The tax credit authorized by sections 135.875 to 135.895 may be claimed by a taxpayer to offset the tax liability imposed by chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, chapter 147, RSMo, chapter 148, RSMo, or chapter 153, RSMo, that becomes due in the tax year during which the investment was made or jobs were created or retained.Where the amount of the credit exceeds the tax liability for the year in which the investment was made or the jobs created or retained, the difference between the credit and the tax liability may be carried forward for the next five succeeding taxable years or until the full credit has been claimed, whichever first occurs.

2.Credits granted to a partnership, a limited liability company taxed as a partnership, an S corporation, or multiple owners of property shall be passed through to the partners, members, or owners respectively pro rata.

3.Certificates of tax credit issued pursuant to this section may be transferred, sold, or assigned by filing a notarized endorsement thereof with the department which names the transferee and the amount of tax credit transferred, as well as any other information reasonably requested by the department.

4.The aggregate of all tax credits authorized pursuant to sections 135.875 to 135.895 shall not exceed five million dollars in any year.

5.In addition to any penalties that may be prescribed in the agreement required by subsection 2 of section 135.885, the department may revoke a tax credit certificate if any representation to the department in connection with the application proves to have been false when made or if the application violates any conditions established by the department and stated in the tax credit certificate.The revocation may be in full or in part as the department may determine.The department shall specify the amount of credit being revoked and shall send notice of the revocation to the taxpayer and to the state department of revenue.

135.895.The department may adopt such rules, statements of policy, procedures, forms, and guidelines as may be necessary for the implementation of this program.No rule or portion of a rule promulgated pursuant to the authority of this section shall become effective unless it has been promulgated pursuant to chapter 536, RSMo.

163.036.1.In computing the amount of state aid a school district is entitled to receive under section 163.031, a school district may use an estimate of the number of eligible pupils for the ensuing year, the number of eligible pupils for the immediately preceding year or the number of eligible pupils for the second preceding school year, whichever is greater, except that the eligible pupil count shall be adjusted such that no school district shall receive state aid for any pupil who is no longer enrolled in the school district as the result of using the proceeds of an educational scholarship to transfer to another qualified school provided pursuant to section 135.827, RSMo.Except as otherwise provided in subsection 3 of this section, any error made in the apportionment of state aid because of a difference between the actual number of eligible pupils and the estimated number of eligible pupils shall be corrected as provided in section 163.091, except that if the amount paid to a district estimating eligible pupils exceeds the amount to which the district was actually entitled by more than five percent, interest at the rate of six percent shall be charged on the excess and shall be added to the amount to be deducted from the district's apportionment the next succeeding year.

2.Notwithstanding the provisions of subsection 1 of this section or any other provision of law, the state board of education shall make an adjustment for the immediately preceding year for any increase in the actual number of eligible pupils above the number on which the state aid in section 163.031 was calculated.Said adjustment shall be made in the manner providing for correction of errors under subsection 1 of this section.

3.(1)For any district which has, for at least five years immediately preceding the year in which the error is discovered, adopted a calendar for the school term in which elementary schools are in session for twelve months of each calendar year, any error made in the apportionment of state aid to such district because of a difference between the actual number of eligible pupils and the estimated number of eligible pupils shall be corrected as provided in section 163.091 and subsection 1 of this section, except that if the amount paid exceeds the amount to which the district was actually entitled by more than five percent and the district provides written application to the state board requesting that the deductions be made pursuant to subdivision (2) of this subsection, then the amounts shall be deducted pursuant to subdivision (2) of this subsection.

(2)For deductions made pursuant to this subdivision, interest at the rate of six percent shall be charged on the excess and shall be included in the amount deducted and the total amount of such excess plus accrued interest shall be deducted from the district's apportionment in equal monthly amounts beginning with the succeeding school year and extending for a period of months specified by the district in its written request and no longer than sixty months.

4.For the purposes of distribution of state school aid pursuant to section 163.031, a school district may elect to use the district's equalized assessed valuation for the preceding year, or an estimate of the current year's assessed valuation if the current year's equalized assessed valuation is estimated to be more than ten percent less than the district's equalized assessed valuation for the preceding year.A district shall give prior notice to the department of its intention to use the current year's assessed valuation pursuant to this subsection.Any error made in the apportionment of state aid because of a difference between the actual equalized assessed valuation for the current year and the estimated equalized assessed valuation for the current year shall be corrected as provided in section 163.091, except that if the amount paid to a district estimating current equalized assessed valuation exceeds the amount to which the district was actually entitled, interest at the rate of six percent shall be charged on the excess and shall be added to the amount to be deducted from the district's apportionment the next succeeding year.

5.For the purposes of distribution of state school aid pursuant to section 163.031, a school district with ten percent or more of its assessed valuation that is owned by one person or corporation as commercial or personal property who is delinquent in a property tax payment may elect, after receiving notice from the county clerk on or before March fifteenth, except in the year enacted, that more than ten percent of its current taxes due the preceding December thirty-first by a single property owner are delinquent, to use on line 2 of the state aid formula the district's equalized assessed valuation for the preceding year or the actual assessed valuation of the year for which the taxes are delinquent less the assessed valuation of property for which the current year's property tax is delinquent.To qualify for use of the actual assessed valuation of the year for which the taxes are delinquent less the assessed valuation of property for which the current year's property tax is delinquent, a district must notify the department of elementary and secondary education on or before April first, except in the year enacted, of the current year amount of delinquent taxes, the assessed valuation of such property for which delinquent taxes are owed and the total assessed valuation of the district for the year in which the taxes were due but not paid.Any district giving such notice to the department of elementary and secondary education shall present verification of the accuracy of such notice obtained from the clerk of the county levying delinquent taxes.When any of the delinquent taxes identified by such notice are paid during a four-year period following the due date, the county clerk shall give notice to the district and the department of elementary and secondary education, and state aid paid to the district shall be reduced by an amount equal to the delinquent taxes received plus interest.The reduction in state aid shall occur over a period not to exceed five years and the interest rate on excess state aid not refunded shall be six percent annually.

6.If a district receives state aid based on equalized assessed valuation as determined by subsection 5 of this section and if prior to such notice the district was paid state aid pursuant to subdivision (2) of subsection 5 of section 163.031, the amount of state aid paid during the year of such notice and the first year following shall equal the sum of state aid paid pursuant to line 1 minus line 10 as defined in subsections 1, 2, 3 and 6 of section 163.031 plus the difference between the state aid amount being paid after such notice minus the amount of state aid the district would have received pursuant to line 1 minus line 10 as defined in subsections 1, 2, 3 and 6 of section 163.031 before such notice.To be eligible to receive state aid based on this provision the district must levy during the first year following such notice at least the maximum levy permitted school districts by article X, section 11(b) of the Missouri Constitution and have a voluntary rollback of its tax rate which is no greater than one cent per one hundred dollars assessed valuation.

348.254.Records and documents submitted to the Missouri technology corporation relating to financial investments in a business, or sales projections or other business plan information which may endanger the competitiveness of a business, or records and documents submitted to the Missouri technology corporation relating to tax credits except for the amount and recipient of any tax credits that are awarded may be deemed a closed record as such term is defined in section 610.010, RSMo.

348.256.The articles of incorporation and bylaws of the Missouri technology corporation shall provide that:

(1)The purposes of the corporation are to contribute to the strengthening of the economy of the state through the development of science and technology, to promote the modernization of Missouri businesses by supporting the transfer of science, technology and quality improvement methods to the workplace, and to enhance the productivity and modernization of Missouri businesses by providing leadership in the establishment of methods of technology application, technology commercialization and technology development;

(2)The board of directors of the corporation is composed of [fifteen] sixteen persons.The governor shall annually appoint one of its members, who must be from the private sector, as chairman. The board shall consist of the following members:

(a)The director of the department of economic development, or the director's designee;

(b)The president of the University of Missouri system, or the president's designee;

(c)The commissioner of higher education;

(d)A member of the state senate, appointed by the president pro tem of the senate;

[(d)](e)A member of the house of representatives, appointed by the speaker of the house;

[(e)](f)Eleven members appointed by the governor, two of which shall be from the public sector and nine members from the private sector who shall include, but shall not be limited to, individuals who represent technology-based businesses and industrial interests;

[(f)](g)Each of the directors of the corporation who is appointed by the governor shall serve for a term of four years and until a successor is duly appointed; except that, of the directors serving on the corporation as of August 28, 1995, three directors shall be designated by the governor to serve a term of four years, three directors shall be designated to serve a term of three years, three directors shall be designated to serve a term of two years, and two directors shall be designated to serve a term of one year.Each director shall continue to serve until a successor is duly appointed by the governor unless removed by the governor.The governor may remove any director if fully satisfied of his or her inefficiency, neglect of duty, or misconduct in office;

(3)[The corporation may receive money from any source, may borrow money, may enter into contracts, and may expend money for any activities appropriate to its purpose;

(4)The corporation may appoint staff and do all other things necessary or incidental to carrying out the functions listed in section 348.261;

(5)]Any changes in the articles of incorporation or bylaws must be approved by the governor;

[(6)](4)The corporation shall submit an annual report to the governor and to the Missouri general assembly.The report shall be due on the first day of November for each year and shall include detailed information on the structure, operation and financial status of the corporation.The corporation shall conduct an annual public hearing to receive comments from interested parties regarding the report, and notice of the hearing shall be given at least fourteen days prior to the hearing; and

[(7)](5)The corporation is subject to an annual audit by the state auditor and that the corporation shall bear the full cost of the audit.

348.261.The corporation, after being certified by the governor as provided by section 348.251, may:

(1)Sue and be sued in its official name;

(2)Adopt and use an official seal;

(3)Apply for and accept gifts, grants, loans, or contributions from any source, public or private;

(4)Purchase, receive, take by grant, gift, devise, bequest, or otherwise, lease, or otherwise acquire, own, hold, improve, employ, use, and otherwise deal in and with, real or personal property, or any interest therein, wherever situated;

(5)Sell, convey, lease, exchange, transfer, or otherwise dispose of, all or any of its property or any interest therein, wherever situated;

(6)Employ and fix the compensation of an executive director and such other agents or employees as it considers necessary, however, the department of economic development may provide administrative staff support in the event the corporation is not adequately funded for employees;

(7)Make all expenditures which are incident and necessary to carry out its purposes and powers;

(8)Assess or charge a fee for each application it receives for financial incentives authorized to be administered by the corporation and assess or charge other fees as the corporation determines to be reasonable to carry out its purposes, including, but not limited to, fees or premiums for loans;

(9)Create such other separate accounts outside of the state treasury as deemed necessary or appropriate by the corporation to carry out the duties and purposes of sections 348.251 to 348.266;

(10)Establish a statewide business modernization network to assist Missouri businesses in identifying ways to enhance productivity and market competitiveness;

[(2)](11)Identify scientific and technological problems and opportunities related to the economy of Missouri and formulate proposals to overcome those problems or realize those opportunities;

[(3)](12)Identify specific areas where scientific research and technological investigation will contribute to the improvement of productivity of Missouri manufacturers and farmers;

[(4)](13)Determine specific areas in which financial investment in scientific and technological research and development from private businesses located in Missouri could be enhanced or increased if state resources were made available to assist in financing activities;

[(5)](14)Assist in establishing cooperative associations of universities in Missouri and of private enterprises for the purpose of coordinating research and development programs that will, consistent with the primary educational function of the universities, aid in the creation of new jobs in Missouri;

[(6)](15)Assist in financing the establishment and continued development of technology-intensive businesses in Missouri;

[(7)](16)Advise universities of the research needs of Missouri business and improve the exchange of scientific and technological information for the mutual benefit of universities and private business;

[(8)](17)Coordinate programs established by universities to provide Missouri businesses with scientific and technological information;

[(9)](18)Establish programs in scientific education [which] that will support the accelerated development of technology-intensive businesses in Missouri;

[(10)](19)Provide financial assistance through contracts, grants and loans to programs of scientific and technological research and development;

[(11)](20)Determine how public universities can increase income derived from the sale or licensure of products or processes having commercial value that are developed as a result of university sponsored research programs;

[(12)](21)Contract with innovation centers, as established in section 348.271, small business development corporations, as established in sections 620.1000 to 620.1007, RSMo, centers for advanced technology, as established in section 348.272, and other entities or organizations for the provision of technology application, technology commercialization and technology development services.Such contracting procedures shall not be subject to the provisions of chapter 34, RSMo; and

[(13)](22)Make direct seed capital or venture capital investments in Missouri business investment funds or businesses which demonstrate the promise of growth and job creation.Investments from the corporation may be in the form of debt or equity in the respective businesses.

620.017.1.The department of economic development shall require that any contract or agreement with any party which provides grants, loans, tax credits, other financial assistance or services, to which a monetary value can be assigned, to such party through a program administered by the department of economic development shall:

(1)Specify that such party shall use the proceeds of any such grant, loan, other financial assistance or the benefits of any services solely as required by that program through which the loan, grant, financial assistance or service is provided[.];

(2)Describe the economic incentive, including the amount and type of economic incentive;

(3)State why the economic incentive is needed;

(4)State the public purpose or purposes for the economic incentive;

(5)State the goal or goals for the economic incentive and the time periods by which these goals will be met;

(6)Describe the financial obligation of the party if the requirements of the contract or agreement are not met;

(7)State the name and address of the parent corporation of the recipient, if any; and

(8)State all other financial assistance known by the department that was received by the recipient for the same project.

2.In addition, such a contract or agreement shall require that any recipient which uses the proceeds or services for any other purpose or fails to comply with any requirement established by the program through which the loan, grant, tax credit, financial assistance or service is provided shall return any remaining proceeds to the department and shall also require that any proceeds expended or the value of any incentives or services to which a monetary value can be assigned received by the party shall be repaid to the department as required by the contract.

3.The contracts or agreements required by this section shall be governed by and enforceable through the applicable provisions of contract law.

4.The department of economic development shall prepare an annual report regarding all economic incentives administered in the previous calendar year and submit such report to the governor, the president pro tem of the senate, and the speaker of the house of representatives by July first of each year.The annual report shall be made available to the public and shall include, but not be limited to, the following elements:

(1)The total amount of economic incentives awarded by region of the state;

(2)The total amount of economic incentives awarded by industry;

(3)The distribution of economic incentives by type and public purpose;

(4)The distribution of economic incentives by the size of all business recipients; and

(5)A reporting of any legal action taken by the department or the state with any parties which have failed to comply with a contract or agreement pursuant to this section.

620.606.The joint committee on economic development policy and planning established in section 620.602, shall conduct a review of the enterprise zone program established by sections 135.200 to 135.270, RSMo, to include local and state incentives.A report based on such review, with any recommended legislative changes, shall be submitted to the speaker of the house of representatives and the president pro tempore of the senate no later than February first following the year in which the review is conducted.

620.1039.1.As used in this section, the [term] following terms mean:

(1)"Department", the Missouri department of economic development;

(2)"Director", the director of the department of economic development, or a person acting under the supervision of the director;

(3)"Qualified research expenses", has the same meaning as prescribed in 26 U.S.C.A. Section 41, except that contract research expenses paid or incurred by the taxpayer for research conducted at a university may be counted at one hundred percent of such amounts;

(4)"Targeted industry", an industry or one of a cluster of industries that is identified by the department as critical to the state's economic security and growth and affirmed as such by the joint committee on economic development policy and planning established in section 620.602;

(5)"Taxpayer" [means], an individual, a partnership, or a corporation as described in section 143.441 or 143.471, RSMo, or section 148.370, RSMo, [and the term "qualified research expenses" has the same meaning as prescribed in 26 U.S.C. 41] that is a targeted industry;

(6)"University", a public university of the state of Missouri.

2.For tax years beginning on or after January 1, 2001, but before January 1, 2004, the director [of the department of economic development] may authorize a taxpayer to receive a tax credit against the tax otherwise due pursuant to chapter 143, RSMo, or chapter 148, RSMo, other than the taxes withheld pursuant to sections 143.191 to 143.265, RSMo, in an amount up to six and one-half percent of the excess of the taxpayer's qualified research expenses, as certified by the director [of the department of economic development], within this state during the taxable year over the average of the taxpayer's qualified research expenses within this state over the immediately preceding three taxable years; except that, no tax credit shall be allowed on that portion of the taxpayer's qualified research expenses incurred within this state during the taxable year in which the credit is being claimed, to the extent such expenses exceed two hundred percent of the taxpayer's average qualified research expenses incurred during the immediately preceding three taxable years.For tax years beginning on or after January 1, 2004, the director may authorize a taxpayer to receive a tax credit against the tax otherwise due pursuant to chapter 143, RSMo, or chapter 148, RSMo, other than the taxes withheld pursuant to sections 143.191 to 143.265, RSMo, in an amount up to six and one-half percent of the excess of the taxpayer's qualified research expenses, as certified by the director, within this state during the taxable year over the average of the taxpayer's qualified research expenses within this state over the immediately preceding three taxable years; except that, no tax credit shall be allowed on that portion of the taxpayer's qualified research expenses incurred within this state during the taxable year in which the credit is being claimed, to the extent such expenses exceed two hundred percent of the taxpayer's average qualified research expenses incurred during the immediately preceding three taxable years, except that a taxpayer that has been in existence for three years shall be limited to two hundred percent of the average expenses incurred during the immediately preceding two taxable years, a taxpayer that has been in existence for two years shall be limited to two hundred percent of the expenses incurred during the immediately preceding taxable year, and a taxpayer that has been in existence for one year shall not be so limited.

3.The director [of economic development] shall prescribe the manner in which the tax credit may be applied for.The tax credit authorized by this section may be claimed by the taxpayer to offset the tax liability imposed by chapter 143, RSMo, or chapter 148, RSMo, that becomes due in the tax year during which such qualified research expenses were incurred.Where the amount of the credit exceeds the tax liability, the difference between the credit and the tax liability may only be carried forward for the next five succeeding taxable years or until the full credit has been claimed, whichever first occurs.The application for tax credits authorized by the director pursuant to subsection 2 of this section shall be made no later than the end of the taxpayer's tax period immediately following the tax period for which the credits are being claimed.

4.Certificates of tax credit issued pursuant to this section may be transferred, sold or assigned by filing a notarized endorsement thereof with the department which names the transferee and the amount of tax credit transferred.[The director of economic development may allow a taxpayer to transfer, sell or assign up to forty percent of the amount of the certificates of tax credit issued to and not claimed by such taxpayer pursuant to this section during any tax year commencing on or after January 1, 1996, and ending not later than December 31, 1999.Such taxpayer shall file, by December 31, 2001, an application with the department which names the transferee, the amount of tax credit desired to be transferred, and a certification that the funds received by the applicant as a result of the transfer, sale or assignment of the tax credit shall be expended within three years at the state university for the sole purpose of conducting research activities agreed upon by the department, the taxpayer and the state university.Failure to expend such funds in the manner prescribed pursuant to this section shall cause the applicant to be subject to the provisions of section 620.017.]

5.No rule or portion of a rule promulgated under the authority of this section shall become effective unless it has been promulgated pursuant to the provisions of chapter 536, RSMo.All rulemaking authority delegated prior to June 27, 1997, is of no force and effect and repealed; however, nothing in this section shall be interpreted to repeal or affect the validity of any rule filed or adopted prior to June 27, 1997, if such rule complied with the provisions of chapter 536, RSMo.The provisions of this section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, including the ability to review, to delay the effective date, or to disapprove and annul a rule or portion of a rule, are subsequently held unconstitutional, then the purported grant of rulemaking authority and any rule so proposed and contained in the order of rulemaking shall be invalid and void.

6.The [aggregate of all] tax credits authorized pursuant to this section shall not exceed nine million seven hundred thousand dollars in any year.

[32.110.Any business firm which engages in the activities of providing physical revitalization, economic development, job training or education for individuals, community services, eligible farmers' markets or crime prevention in the state of Missouri shall receive a tax credit as provided in section 32.115 if the director of the department of economic development annually approves the proposal of the business firm; except that, no proposal shall be approved which does not have the endorsement of the agency of local government within the area in which the business firm is engaging in such activities which has adopted an overall community or neighborhood development plan that the proposal is consistent with such plan.The proposal shall set forth the program to be conducted, the neighborhood area to be served, why the program is needed, the estimated amount to be contributed to the program and the plans for implementing the program.If, in the opinion of the director of the department of economic development, a business firm's contribution can more consistently with the purposes of sections 32.100 to 32.125 be made through contributions to a neighborhood organization as defined in subdivision (15) of section 32.105, tax credits may be allowed as provided in section 32.115.The director of the department of economic development is hereby authorized to promulgate rules and regulations for establishing criteria for evaluating such proposals by business firms for approval or disapproval and for establishing priorities for approval or disapproval of such proposals by business firms with the assistance and approval of the director of the department of revenue.The total amount of tax credit granted for programs approved pursuant to sections 32.100 to 32.125 shall not exceed fourteen million dollars in fiscal year 1999 and twenty-six million dollars in fiscal year 2000, and any subsequent fiscal year, except as otherwise provided for proposals approved pursuant to section 32.111, 32.112 or 32.117.All tax credits authorized pursuant to the provisions of sections 32.100 to 32.125 may be used as a state match to secure additional federal funding.The total amount of tax credits allowed for programs of neighborhood organizations defined pursuant to paragraph (d) of subdivision (15) of section 32.105 is two and one-half million dollars per fiscal year for fiscal years 2002 to 2006.] [32.117.1.Any business firm which engages in the activity of providing a homeless assistance project for low-income persons in the state of Missouri shall receive a tax credit as provided in section 32.115, if the division of community development within the department of economic development annually approves the proposal of the business firm.The proposal shall only be approved if the project is located in a city with a population of four hundred thousand or more inhabitants which is located in more than one county and which serves a mix of rural and urban counties.

2.For purposes of this section "low-income persons" shall mean families or persons with incomes of fifty percent or less of median income adjusted for family size as allowed by the Department of Housing and Urban Development (HUD) under section 8.

3.The purpose of a homeless assistance project shall be to serve low-income families or persons who are experiencing economic crisis caused by one or more of the following:

(1)Loss of employment;

(2)Medical disability or emergency;

(3)Loss or delay of some form of public assistance benefits;

(4)Natural disaster;

(5)Substantial change in household composition;

(6)Victimization by criminal activity;

(7)Illegal action by a landlord;

(8)Displacement by government or private action; or

(9)Some other condition which constitutes a hardship.

4.The amount of the tax credit shall not exceed fifty-five percent of the value of the proposal benefits, which shall include one or more of the following types of benefits to low-income persons in order to be eligible:

(1)Payment of rent or mortgage for not more than three months during any twelve-month period;

(2)Payment to a landlord of a rent deposit or a security deposit for not more than two months during any twelve-month period;

(3)Case management services which shall include support services such as child care, education resource assistance, job resource assistance, counseling, and resource and referral;

(4)Outreach services to low-income persons to prevent homelessness;

(5)Transitional housing facilities with support services.

5.The homeless assistance program shall give priority to the following types of low-income families or individuals:

(1)Families with minor children who are in imminent danger of removal from the family because of a lack of suitable housing accommodation;

(2)Single parent household;

(3)Other households with children;

(4)Households with a disabled household member or a household member who is at least sixty-five years of age;

(5)All other households.

6.The organization implementing a homeless assistance program pursuant to this section shall make annual reports identifying the goal of the program, the number of recipients served, the type of services rendered, and moneys expended to provide the program.The program report shall be submitted to the governor, speaker of the house of representatives and the president pro tem of the senate.These reports shall also be available to the general public upon request.

7.For each of the fiscal years beginning on July 1, 1991, and July 1, 1992, one million dollars in tax credits may be allowed to be used for the homeless assistance pilot project, pursuant to this section.] [32.120.The decision of the director of the department of economic development to approve or disapprove a proposal pursuant to section 32.110 shall be in writing, and if he approves the proposal, he shall state the maximum credit allowable to the business firm.A copy of the decision of the director of the department of economic development shall be transmitted to the director of revenue and to the governor.] [32.125.1.No rule or portion of a rule promulgated under the authority of this chapter or any provisions of any other chapter by the department of revenue shall become effective until it has been approved by the joint committee on administrative rules in accordance with the procedures provided herein, and the delegation of the legislative authority to enact law by the adoption of such rules is dependent upon the power of the joint committee on administrative rules to review and suspend rules pending ratification by the senate and the house of representatives as provided herein.

2.Upon filing any proposed rule with the secretary of state, the department of revenue shall concurrently submit such proposed rule to the committee, which may hold hearings upon any proposed rule or portion thereof at any time.

3.A final order of rulemaking shall not be filed with the secretary of state until thirty days after such final order of rulemaking has been received by the committee.The committee may hold one or more hearings upon such final order of rulemaking during the thirty-day period.If the committee does not disapprove such order of rulemaking within the thirty-day period, the department of revenue may file such order of rulemaking with the secretary of state and the order of rulemaking shall be deemed approved.

4.The committee may, by majority vote of the members, suspend the order of rulemaking or portion thereof by action taken prior to the filing of the final order of rulemaking only for one or more of the following grounds:

(1)An absence of statutory authority for the proposed rule;

(2)An emergency relating to public health, safety or welfare;

(3)The proposed rule is in conflict with state law;

(4)A substantial change in circumstance since enactment of the law upon which the proposed rule is based.

5.If the committee disapproves any rule or portion thereof, the department of revenue shall not file such disapproved portion of any rule with the secretary of state and the secretary of state shall not publish in the Missouri Register any final order of rulemaking containing the disapproved portion.

6.If the committee disapproves any rule or portion thereof, the committee shall report its findings to the senate and the house of representatives.No rule or portion thereof disapproved by the committee shall take effect so long as the senate and the house of representatives ratify the act of the joint committee by resolution adopted in each house within thirty legislative days after such rule or portion thereof has been disapproved by the joint committee.

7.Upon adoption of a rule as provided herein, any such rule or portion thereof may be suspended or revoked by the general assembly either by bill or, pursuant to section 8, article IV of the constitution, by concurrent resolution upon recommendation of the joint committee on administrative rules. The committee shall be authorized to hold hearings and make recommendations pursuant to the provisions of section 536.037, RSMo.The secretary of state shall publish in the Missouri Register, as soon as practicable, notice of the suspension or revocation.] [135.460.1.Section 135.460 and sections 620.1100 and 620.1103, RSMo, shall be known and may be cited as the "Youth Opportunities and Violence Prevention Act".

2.As used in this section, the term "taxpayer" shall include corporations as defined in section 143.441 or 143.471, RSMo, and individuals, individual proprietorships and partnerships.

3.A taxpayer shall be allowed a tax credit against the tax otherwise due pursuant to chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, chapter 147, RSMo, chapter 148, RSMo, or chapter 153, RSMo, in an amount equal to thirty percent for property contributions and fifty percent for monetary contributions of the amount such taxpayer contributed to the programs described in subsection 5 of this section, not to exceed two hundred thousand dollars per taxable year, per taxpayer; except as otherwise provided in subdivision (5) of subsection 5 of this section.The department of economic development shall prescribe the method for claiming the tax credits allowed in this section.No rule or portion of a rule promulgated under the authority of this section shall become effective unless it has been promulgated pursuant to the provisions of chapter 536, RSMo.All rulemaking authority delegated prior to June 27, 1997, is of no force and effect and repealed; however, nothing in this section shall be interpreted to repeal or affect the validity of any rule filed or adopted prior to June 27, 1997, if such rule complied with the provisions of chapter 536, RSMo.The provisions of this section and chapter 536, RSMo, are nonseverable and if any of the powers vested with the general assembly pursuant to chapter 536, RSMo, including the ability to review, to delay the effective date, or to disapprove and annul a rule or portion of a rule, are subsequently held unconstitutional, then the purported grant of rulemaking authority and any rule so proposed and contained in the order of rulemaking shall be invalid and void.

4.The tax credits allowed by this section shall be claimed by the taxpayer to offset the taxes that become due in the taxpayer's tax period in which the contribution was made.Any tax credit not used in such tax period may be carried over the next five succeeding tax periods.

5.The tax credit allowed by this section may only be claimed for monetary or property contributions to public or private programs authorized to participate pursuant to this section by the department of economic development and may be claimed for the development, establishment, implementation, operation, and expansion of the following activities and programs:

(1)An adopt-a-school program.Components of the adopt-a-school program shall include donations for school activities, seminars, and functions; school-business employment programs; and the donation of property and equipment of the corporation to the school;

(2)Expansion of programs to encourage school dropouts to reenter and complete high school or to complete a graduate equivalency degree program;

(3)Employment programs.Such programs shall initially, but not exclusively, target unemployed youth living in poverty and youth living in areas with a high incidence of crime;

(4)New or existing youth clubs or associations;

(5)Employment/internship/apprenticeship programs in business or trades for persons less than twenty years of age, in which case the tax credit claimed pursuant to this section shall be equal to one-half of the amount paid to the intern or apprentice in that tax year, except that such credit shall not exceed ten thousand dollars per person;

(6)Mentor and role model programs;

(7)Drug and alcohol abuse prevention training programs for youth;

(8)Donation of property or equipment of the taxpayer to schools, including schools which primarily educate children who have been expelled from other schools, or donation of the same to municipalities, or not-for-profit corporations or other not-for-profit organizations which offer programs dedicated to youth violence prevention as authorized by the department;

(9)Not-for-profit, private or public youth activity centers;

(10)Nonviolent conflict resolution and mediation programs;

(11)Youth outreach and counseling programs.

6.Any program authorized in subsection 5 of this section shall, at least annually, submit a report to the department of economic development outlining the purpose and objectives of such program, the number of youth served, the specific activities provided pursuant to such program, the duration of such program and recorded youth attendance where applicable.

7.The department of economic development shall, at least annually submit a report to the Missouri general assembly listing the organizations participating, services offered and the number of youth served as the result of the implementation of this section.

8.The tax credit allowed by this section shall apply to all taxable years beginning after December 31, 1995.

9.For the purposes of the credits described in this section, in the case of a corporation described in section 143.471, RSMo, partnership, limited liability company described in section 347.015, RSMo, cooperative, marketing enterprise, or partnership, in computing Missouri's tax liability, such credits shall be allowed to the following:

(1)The shareholders of the corporation described in section 143.471, RSMo;

(2)The partners of the partnership;

(3)The members of the limited liability company; and

(4)Individual members of the cooperative or marketing enterprise.

Such credits shall be apportioned to the entities described in subdivisions (1) and (2) of this subsection in proportion to their share of ownership on the last day of the taxpayer's tax period.] [135.535.1.A corporation, limited liability corporation, partnership or sole proprietorship, which moves its operations from outside Missouri or outside a distressed community into a distressed community, or which commences operations in a distressed community on or after January 1, 1999, and in either case has more than seventy-five percent of its employees at the facility in the distressed community, and which has fewer than one hundred employees for whom payroll taxes are paid, and which is a manufacturing, biomedical, medical devices, scientific research, animal research, computer software design or development, computer programming, telecommunications or a professional firm shall receive a forty percent credit against income taxes owed pursuant to chapter 143, 147 or 148, RSMo, other than taxes withheld pursuant to sections 143.191 to 143.265, RSMo, for each of the three years after such move, if approved by the department of economic development, which shall issue a certificate of eligibility if the department determines that the taxpayer is eligible for such credit.The maximum amount of credits per taxpayer set forth in this subsection shall not exceed one hundred twenty-five thousand dollars for each of the three years for which the credit is claimed.The department of economic development, by means of rule or regulation promulgated pursuant to the provisions of chapter 536, RSMo, shall assign appropriate standard industrial classification numbers to the companies which are eligible for the tax credits provided for in this section.Such three-year credits shall be awarded only one time to any company which moves its operations from outside of Missouri or outside of a distressed community into a distressed community or to a company which commences operations within a distressed community.A taxpayer shall file an application for certification of the tax credits for the first year in which credits are claimed and for each of the two succeeding taxable years for which credits are claimed.

2.Employees of such facilities physically working and earning wages for that work within a distressed community whose employers have been approved for tax credits pursuant to subsection 1 of this section by the department of economic development for whom payroll taxes are paid shall, also be eligible to receive a tax credit against individual income tax, imposed pursuant to chapter 143, RSMo, equal to one and one-half percent of their gross salary paid at such facility earned for each of the three years that the facility receives the tax credit provided by this section, so long as they were qualified employees of such entity.The employer shall calculate the amount of such credit and shall report the amount to the employee and the department of revenue.

3.A tax credit against income taxes owed pursuant to chapter 143, 147 or 148, RSMo, other than the taxes withheld pursuant to sections 143.191 to 143.265, RSMo, in lieu of the credit against income taxes as provided in subsection 1 of this section, may be taken by such an entity in a distressed community in an amount of forty percent of the amount of funds expended for computer equipment and its maintenance, medical laboratories and equipment, research laboratory equipment, manufacturing equipment, fiber optic equipment, high speed telecommunications, wiring or software development expense up to a maximum of seventy-five thousand dollars in tax credits for such equipment or expense per year per entity and for each of three years after commencement in or moving operations into a distressed community.A corporation, partnership or sole proprietorship, which has no more than one hundred employees for whom payroll taxes are paid, and which is already located in a distressed community, which expends funds for such equipment as set forth in this subsection in an amount exceeding its average of the prior two years for such equipment, shall be eligible to receive a twenty-five percent tax credit against income taxes owed pursuant to chapters 143, 147 and 148, RSMo, up to a maximum of seventy-five thousand dollars in tax credits for such additional equipment and expense per such entity.Tax credits pursuant to this subsection or subsection 1 may be used to satisfy the state tax liability due in the tax year the credit is certified, and that was due during the previous three years, and in any of the five tax years thereafter.

4.Tax credits shall be approved for applicants meeting the requirements of this section in the order that such applications are received.Certificates of tax credits issued in accordance with this section may be transferred, sold or assigned by notarized endorsement which names the transferee.

5.The tax credits allowed pursuant to subsections 1, 2 and 3 of this section shall be for an amount of no more than ten million dollars for each year beginning in 1999.The total maximum credit for all entities already located in distressed communities and claiming credits pursuant to subsection 3 of this section shall be seven hundred and fifty thousand dollars.The department of economic development in approving taxpayers for the credit as provided for in subsection 4 of this section shall use information provided by the department of revenue regarding taxes paid in the previous year, or projected taxes for those entities newly established in the state, as the method of determining when this maximum will be reached and shall maintain a record of the order of approval.Any tax credit not used in the period for which the credit was approved may be carried over until the full credit has been allowed.

6.A Missouri employer relocating into a distressed community and having employees covered by a collective bargaining agreement at the facility from which it is relocating shall not be eligible for the credits in subsection 1 or 3 of this section, and its employees shall not be eligible for the credit in subsection 2 of this section if the relocation violates or terminates a collective bargaining agreement covering employees at the facility, unless the affected collective bargaining unit concurs with the move.

7.Notwithstanding any provision of law to the contrary, no taxpayer shall earn the tax credits allowed in this section and the tax credits otherwise allowed in section 135.110, or the tax credits, exemptions, and refund otherwise allowed in sections 135.200, 135.220, 135.225 and 135.245, respectively, for the same business for the same tax period.

8.An existing business located within a distressed community, that hires new employees within such distressed communities may be eligible for the tax credits provided in this section.In order to be eligible for such tax credits, the business located within the distressed community, during one of its tax years, must employ within such distressed communities at least twice as many workers as were employed at the beginning of that tax year.Prior to the addition of the new employees, the business shall have no more than one hundred employees.The provisions of this section shall apply only to a business which is a manufacturing, biomedical, medical devices, scientific research, animal research, computer software design or development, computer programming, or telecommunications business or a professional firm.] [135.535.1.A corporation, limited liability corporation, partnership or sole proprietorship, which moves its operations from outside Missouri or outside a distressed community into a distressed community, or which commences operations in a distressed community on or after January 1, 1999, and in either case has more than seventy-five percent of its employees at the facility in the distressed community, and which has fewer than one hundred employees for whom payroll taxes are paid, and which is a manufacturing, biomedical, medical devices, scientific research, animal research, computer software design or development, computer programming, telecommunications or a professional firm shall receive a forty percent credit against income taxes owed pursuant to chapter 143, 147 or 148, RSMo, other than taxes withheld pursuant to sections 143.191 to 143.265, RSMo, for each of the three years after such move, if approved by the department of economic development, which shall issue a certificate of eligibility if the department determines that the taxpayer is eligible for such credit.The maximum amount of credits per taxpayer set forth in this subsection shall not exceed one hundred twenty-five thousand dollars for each of the three years for which the credit is claimed.The department of economic development, by means of rule or regulation promulgated pursuant to the provisions of chapter 536, RSMo, shall assign appropriate standard industrial classification numbers to the companies which are eligible for the tax credits provided for in this section.Such three-year credits shall be awarded only one time to any company which moves its operations from outside of Missouri or outside of a distressed community into a distressed community or to a company which commences operations within a distressed community.A taxpayer shall file an application for certification of the tax credits for the first year in which credits are claimed and for each of the two succeeding taxable years for which credits are claimed.

2.Employees of such facilities physically working and earning wages for that work within a distressed community whose employers have been approved for tax credits pursuant to subsection 1 of this section by the department of economic development for whom payroll taxes are paid shall, also be eligible to receive a tax credit against individual income tax, imposed pursuant to chapter 143, RSMo, equal to one and one-half percent of their gross salary paid at such facility earned for each of the three years that the facility receives the tax credit provided by this section, so long as they were qualified employees of such entity.The employer shall calculate the amount of such credit and shall report the amount to the employee and the department of revenue.

3.A tax credit against income taxes owed pursuant to chapter 143, 147 or 148, RSMo, other than the taxes withheld pursuant to sections 143.191 to 143.265, RSMo, in lieu of the credit against income taxes as provided in subsection 1 of this section, may be taken by such an entity in a distressed community in an amount of forty percent of the amount of funds expended for computer equipment and its maintenance, medical laboratories and equipment, research laboratory equipment, manufacturing equipment, fiber optic equipment, high speed telecommunications, wiring or software development expense up to a maximum of seventy-five thousand dollars in tax credits for such equipment or expense per year per entity and for each of three years after commencement in or moving operations into a distressed community.

4.A corporation, partnership or sole partnership, which has no more than one hundred employees for whom payroll taxes are paid, which is already located in a distressed community and which expends funds for such equipment pursuant to subsection 3 of this section in an amount exceeding its average of the prior two years for such equipment, shall be eligible to receive a tax credit against income taxes owed pursuant to chapters 143, 147 and 148, RSMo, in an amount equal to the lesser of seventy-five thousand dollars or twenty-five percent of the funds expended for such additional equipment per such entity.Tax credits allowed pursuant to this subsection or subsection 1 of this section may be carried back to any of the three prior tax years and carried forward to any of the five tax years.

5.An existing corporation, partnership or sole proprietorship that is located within a distressed community and that relocates employees from another facility outside of the distressed community to its facility within the distressed community, and an existing business located within a distressed community that hires new employees for that facility may both be eligible for the tax credits allowed by subsections 1 and 3 of this section.To be eligible for such tax credits, such a business, during one of its tax years, shall employ within a distressed community at least twice as many employees as were employed at the beginning of that tax year.A business hiring employees shall have no more than one hundred employees before the addition of the new employees.This subsection shall only apply to a business which is a manufacturing, biomedical, medical devices, scientific research, animal research, computer software design or development, computer programming or telecommunications business, or a professional firm.

6.Tax credits shall be approved for applicants meeting the requirements of this section in the order that such applications are received.Certificates of tax credits issued in accordance with this section may be transferred, sold or assigned by notarized endorsement which names the transferee.

7.The tax credits allowed pursuant to subsections 1, 2, 3, 4 and 5 of this section shall be for an amount of no more than ten million dollars for each year beginning in 1999.The total maximum credit for all entities already located in distressed communities and claiming credits pursuant to subsection 4 of this section shall be seven hundred and fifty thousand dollars.The department of economic development in approving taxpayers for the credit as provided for in subsection 6 of this section shall use information provided by the department of revenue regarding taxes paid in the previous year, or projected taxes for those entities newly established in the state, as the method of determining when this maximum will be reached and shall maintain a record of the order of approval.Any tax credit not used in the period for which the credit was approved may be carried over until the full credit has been allowed.

8.A Missouri employer relocating into a distressed community and having employees covered by a collective bargaining agreement at the facility from which it is relocating shall not be eligible for the credits in subsection 1, 3, 4 or 5 of this section, and its employees shall not be eligible for the credit in subsection 2 of this section if the relocation violates or terminates a collective bargaining agreement covering employees at the facility, unless the affected collective bargaining unit concurs with the move.

9.Notwithstanding any provision of law to the contrary, no taxpayer shall earn the tax credits allowed in this section and the tax credits otherwise allowed in section 135.110, or the tax credits, exemptions, and refund otherwise allowed in sections 135.200, 135.220, 135.225 and 135.245, respectively, for the same business for the same tax period.] [135.545.A taxpayer shall be allowed a credit for taxes paid pursuant to chapter 143, 147 or 148, RSMo, in an amount equal to fifty percent of a qualified investment in transportation development for aviation, mass transportation, including parking facilities for users of mass transportation, railroads, ports, including parking facilities and limited access roads within ports, waterborne transportation, bicycle and pedestrian paths, or rolling stock located in a distressed community as defined in section 135.530, and which are part of a development plan approved by the appropriate local agency.If the department of economic development determines the investment has been so approved, the department shall grant the tax credit in order of date received.A taxpayer may carry forward any unused tax credit for up to ten years and may carry it back for the previous three years until such credit has been fully claimed.Certificates of tax credit issued in accordance with this section may be transferred, sold or assigned by notarized endorsement which names the transferee.The tax credits allowed pursuant to this section shall be for an amount of no more than ten million dollars for each year.This credit shall apply to returns filed for all taxable years beginning on or after January 1, 1999.Any unused portion of the tax credit authorized pursuant to this section shall be available for use in the future by those entities until fully claimed.] [135.750.1.Beginning January 1, 1999, a taxpayer shall be granted a tax credit against the tax otherwise due pursuant to chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.261, RSMo, or chapter 148, RSMo, for up to fifty percent of the amount of investment in production or production-related activities in a qualified film production project. As used in this section, the term "taxpayer" means an individual, a partnership, or a corporation as described in section 143.441, 143.471, RSMo, or section 148.370, RSMo, and the term "qualified film production project" means any film production project with an expected in-state expenditure budget in excess of three hundred thousand dollars.Each film production company shall be limited to one qualified film production project per year.Activities qualifying a taxpayer for the tax credit pursuant to this subsection shall be approved by the office of the Missouri film commission and the department of economic development.

2.Taxpayers shall apply for the film production tax credit by submitting an application to the department of economic development, on a form provided by the department.As part of the application, the expected in-state expenditures of the qualified film production project shall be documented.In addition, the application shall include an economic impact statement, showing the economic impact from the activities of the film production project.Such economic impact statement shall indicate the impact on the region of the state in which the film production or production-related activities are located and on the state as a whole.

3.Tax credits certified pursuant to subsection 1 of this section shall not exceed five hundred thousand dollars per taxpayer per year, and shall not exceed a total for all tax credits certified of one million dollars per year.Taxpayers may carry forward unused credits for up to five tax periods, provided all such credits shall be claimed within ten tax periods following the tax period in which the film production or production-related activities for which the credits are certified by the department occurred.

4.Notwithstanding any provision of law to the contrary, any taxpayer may sell, assign, exchange, convey or otherwise transfer tax credits allowed in subsection 1 of this section.The taxpayer acquiring the tax credits may use the acquired credits to offset the tax liabilities otherwise imposed by chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.261, RSMo, or chapter 148, RSMo.Unused acquired credits may be carried forward for up to five tax periods, provided all such credits shall be claimed within ten tax periods following the tax period in which the film production or production-related activities for which the credits are certified by the department occurred.] [135.766.An eligible small business, as defined in Section 44 of the Internal Revenue Code, shall be allowed a credit against the tax otherwise due pursuant to chapter 143, RSMo, not including sections 143.191 to 143.265, RSMo, in an amount equal to any amount paid by the eligible small business to the United States Small Business Administration as a guaranty fee pursuant to obtaining Small Business Administration guaranteed financing and to programs administered by the United States Department of Agriculture for rural development or farm service agencies.] [620.1100.1.The "Youth Opportunities and Violence Prevention Program" is hereby established in the division of community and economic development of the department of economic development to broaden and strengthen opportunities for positive development and participation in community life for youth, and to discourage such persons from engaging in criminal and violent behavior.For the purposes of section 135.460, RSMo, this section and section 620.1103, the term "advisory committee" shall mean an advisory committee to the division of community and economic development established pursuant to this section composed of ten members of the public.The ten members of the advisory committee shall include members of the private sector with expertise in youth programs, and at least one person under the age of twenty-one.Such members shall be appointed for two-year terms by the director of the department of economic development.

2.The "Youth Opportunities and Violence Prevention Fund" is hereby established in the state treasury and shall be administered by the department of economic development.The department may accept for deposit into the fund any grants, bequests, gifts, devises, contributions, appropriations, federal funds, and any other funds from whatever source derived.Moneys in the fund shall be used solely for purposes provided in section 135.460, RSMo, this section and section 620.1103.Any unexpended balance in the fund at the end of a fiscal year shall be exempt from the provisions of section 33.080, RSMo, relating to the transfer of unexpended balances to the general revenue fund.

3.The department of economic development in conjunction with the advisory committee shall establish program criteria and evaluation methods for tax credits claimed pursuant to section 135.460, RSMo.Such criteria and evaluation methods shall measure program effectiveness and outcomes, and shall give priority to local, neighborhood, community-based programs.The department shall monitor and evaluate all programs funded pursuant to section 135.460, RSMo, this section and section 620.1103.Such programs shall provide a priority for applications from areas of the state which have statistically higher incidence of crime, violence and poverty and such programs shall be funded before the programs which have applied from areas which do not exhibit crime, violence, and poverty to the same degree.The committee shall focus and support specific programs designed to generate self-esteem and a positive self-reliance in youth and which abate youth violence.

4.The department shall develop and operate a database which lists all participating and related programs.The database shall include indexes and cross references and shall be accessible by the public by computer-modem connection.The division of data processing and telecommunications of the office of administration and the department of economic development shall cooperate with the advisory committee in the development and operation of the program.] [620.1103.1.Notwithstanding any provision of law to the contrary, the department may in its discretion assign moneys from the youth opportunities and violence prevention fund to any entity designated by the department, for programs designated in section 135.460, RSMo, section 620.1100 and this section, including, but not limited to, schools, state agencies, political subdivisions and agencies thereof, not-for-profit corporations or not-for-profit organizations, the Missouri youth conservation corps, community action agencies, caring community programs, or any other entity or program such as any early childhood program, including, but not limited to, the parents as teachers program or similar programs; provided that, such assignment of funds does not exceed fifteen percent of the total value of the fund, and provided further that no more than ten percent of such funds assigned shall be used for administrative purposes.

2.Any entity receiving funds pursuant to the youth opportunities and violence prevention act shall sign an agreement to utilize such funds for the programs designated in section 135.460, RSMo, section 620.1100 and this section.The state auditor may conduct an audit to monitor the utilization of funds assigned by the department.If an entity uses funds for purposes other than for the programs designated in section 135.460, RSMo, section 620.1100 and this section, the department shall require the entity to repay such funds to the department.] [620.1400.Sections 620.1400 to 620.1460 shall be known and may be cited as the "Missouri Individual Training Account Program Act" and its provisions shall be effective only within distressed communities as defined by section 135.530, RSMo.] [620.1410.There is hereby established an "Individual Training Account Program" within the department of economic development.Job training and retraining activities conducted pursuant to the provisions of sections 620.1400 to 620.1460 shall be directed to employee advancement, where jobs are linked to training before the training commences, and shall emphasize upgrade training where current or potential employers, by means of educational programs, provide existing employees with training for higher skilled positions.Job training activities provided pursuant to the provisions of the individual training account program shall attempt to prepare employed workers, including those with obsolete or inadequate job skills, for positions that remain unfilled or that may be created by current or potential employers.] [620.1420.As used in sections 620.1400 to 620.1460, the following terms mean:

(1)"Costs of classroom training", the normal costs incurred in the provision of classroom training which may also include specifically identified costs incurred for instructors, classroom space and facilities, administrative support services, and directly related expenses, that together do not exceed the amount normally allowed for support of vocational and technical classes;

(2)"Department", the department of economic development;

(3)"Employee", a full-time or part-time employed worker whose salary is equal to or less than two hundred percent of the federal poverty level;

(4)"Employee upgrade training", the progressive development of skills associated with the defined set of work processes.Such training shall be consistent with a career pattern of advancement, as measured by skill proficiency and the progressive earnings and related benefits, that are recognized within an occupation, trade or industry;

(5)"Individual training account", an account funded by the tax credits provided for in section 620.1440 for the provision of employee upgrade training to employees through their participation in classroom training provided by educational institutions;

(6)"Local educational institution", a publicly funded or privately funded local educational institution which is certified by a recognized accrediting association as capable of providing adequate classroom training to accomplish the purpose of sections 620.1400 to 620.1460.] [620.1430.1.A Missouri employer who desires to participate in the individual training account program shall provide the department of economic development with notification of intent to participate.The notification shall include, but need not be limited to, the names and occupations of employees whom the employer has selected to be trained, whether or not the employees are currently working for the employer, the name of the local educational institution that will provide the training, and a brief description of the training to be given by the institution.

2.The employer shall have complete discretion in the selection of the local educational institution or institutions to provide training and shall be responsible for the payment of the costs of classroom training.] [620.1440.1.Employers may be reimbursed for the costs of training provided pursuant to the provisions of the individual training account program.Such reimbursement shall be in the form of tax credits as authorized in subsection 2 of this section.The tax credits may be claimed for courses provided in no more than two calendar years for each employee.For each year, the maximum amount of credit per employee which can be certified by the department of economic development shall be the lesser of fifty percent of the costs of classroom training or one thousand five hundred dollars.

2.Tax credits may be claimed against any liability incurred by the employer pursuant to the provisions of chapter 143, RSMo, and chapter 148, RSMo, exclusive of the provisions relating to the withholding of tax as provided for in sections 143.191 to 143.265, RSMo.Earned tax credits may be carried forward for a period not to exceed five years and may be sold or transferred.

3.No claim for tax credits submitted to the department by an employer shall be certified until the employer provides documentation that an employee has successfully completed the employee's course training and has been employed by the employer in a new, full-time position for a period of at least three months.It must be demonstrated satisfactorily to the department that the new position in which the employee located is an upgrade in employment, in terms of salary and responsibilities, from the previously held position.All such increases in salary shall be in addition to normal cost-of-living increases provided for in authorized labor-management contracts.If the employee was previously employed in a part-time position, the base salary for the position shall be calculated as if it were a full-time position.] [620.1450.The maximum amount of tax credits allowable pursuant to the provisions of the individual training account program shall not annually exceed six million dollars.] [620.1460.The department of economic development may promulgate necessary rules and regulations to carry out the provisions of sections 620.1400 to 620.1460.No rule or portion of a rule promulgated pursuant to the authority of sections 620.1400 to 620.1460 shall become effective unless it has been promulgated pursuant to the provisions of chapter 536, RSMo.] [620.1560.1.For purposes of this section, the following terms mean:

(1)"Department", the department of economic development;

(2)"Disadvantaged", an individual shall be considered disadvantaged and eligible to participate in the program if such individual meets any one of the following elements:

(a)The family income is at or below one hundred fifty percent of the poverty line;

(b)The individual is receiving public support for the care of a foster child;

(c)The individual faces serious barriers to employment including displaced homemakers; dislocated workers; veterans; or individuals who possess outdated skills;

(3)"Program", the mature worker child care program.

2.There is hereby established within the department of economic development a program to be known as the "Mature Worker Child Care Program".The program will administer a statewide community service, in cooperation with the neighborhood assistance program, to enroll disadvantaged individuals, who are fifty years of age or older, to work in child-care assignments.Enrollees may include qualified individuals who are currently participating in existing community service programs.

3.The department shall solicit proposals from organizations seeking to contract to supervise the participants.Organizations that are awarded a contract will be responsible for recruiting and training participants, locating child-care assignments, and paying participants.Contract proposals shall include:

(1)A requirement that participants in the program be paid the federal minimum wage;

(2)A process that allows participants to work an average of twenty- four hours a week for public and not-for-profit day care providers and for school latch-key programs that provide before- and after-school care;

(3)A description of the range of services to be performed by program participants, including, but not limited to, child care, food preparation, transportation, activity coordination, and clerical duties;

(4)A requirement that the participating facilities provide proof of required licensure under sections 210.201 to 210.259, RSMo, with the exception of the public school system.

4.The program shall be implemented by July 1, 2000, and shall be funded through general revenue funds with no more than twelve percent of the funds to be used for administrative purposes.

5.In addition to tax credits currently available under the neighborhood assistance program, a participating facility shall be allowed a credit against the tax imposed by chapter 143, RSMo, excluding withholding tax imposed by sections 143.191 to 143.265, RSMo, and chapter 147, 148 or 153, RSMo, pursuant to this section.The amount of tax credit claimed shall not exceed the amount of the taxpayer's state tax liability for the taxable year that the credit is claimed.Taxpayers eligible for such tax credit may transfer, sell or assign them.Individual salaries up to ten thousand dollars per program participant each taxable year are eligible for the tax credit which shall not exceed twenty-five percent of the eligible salary amount.Total tax credits taken through the program shall not exceed two million dollars.

6.The department of economic development shall verify all tax credit claims by participating facilities.The tax credit allowed by this section shall apply to all taxable years beginning after December 31, 1999.

7.Subject to appropriations and to the provisions of chapter 34, RSMo, the oversight division of the committee on legislative research shall award up to thirty thousand dollars every two years for an independent evaluation of the program.Based on this program evaluation, the department shall provide a comprehensive report on the program to the speaker of the house and the president pro tem of the senate by March first of each year, beginning in 2001.] Section B.The repeal and reenactment of sections 100.105, 620.017, and 620.1039 shall become effective on January 1, 2004.

Section C.The repeal of section 135.545, section 135.535 as enacted by conference committee substitute for senate substitute for senate committee substitute for house substitute for house committee substitute for house bill no. 701 of the ninetieth general assembly, first regular session, and section 135.535 as enacted by conference committee substitute no. 2 for house substitute for house committee substitute for senate bill no. 20 of the ninetieth general assembly, first regular session, shall become effective on January 1, 2004.

Section D.The repeal and reenactment of sections 32.100, 32.105, and 32.115 shall become effective on January 1, 2006.

Section E.The repeal of sections 32.110, 32.117, 32.120, 135.460, 620.1100, 620.1103, and section 32.125 as enacted by house substitute for senate bill no. 374, eighty-eighth general assembly, first regular session, shall become effective on January 1, 2006.